Priced In GBP/CHF Plunges, U.K. & E.U. Reaches a Deal!
|What a day it is, the Sterling is making dual side movements in the wake of Brexit deal. A Brexit agreement has been made within the U.K. and E.U. ere to a meeting of European leaders in Brussels.
The British Prime Minister now encounters a struggle to make it through Parliament with former associates the DUP stating they will not support it. He urged M.P.s to "come together to get Brexit done and get this excellent deal over the line."
British Pound made a strong bullish movement on the news, but later reversed as most of the Brexit deal was already priced in. Moreover, the investors are worried about parliament vote on it.
The GBPCHF traded precisely in line with our forecast to hit our bullish target at 1.2860. It's been falling now as the market is exceptionally overbought now.
The MACD is consistently forming smaller histograms than before, suggesting chances of a bearish retracement in the pair.
The GBPCHF continues to hold in the overbought zone, below 61.8% Fibonacci retracement level of 1.2790. The pair has closed a Doji candle below 1.2790 resistance level, which is suggesting the chances of a bearish reversal. Today 1.2790 remains the fundamental level as below this, GBPCHF may stay in selling until 1.2625. The bullish breakout can extend buying until 1.2855.
GBPCHF - Trade Setup
Entry - Sell Below 1.2700
Take Profit - 1.2620 & 1.2575
Stop Loss - 1.2765
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.