GBP/CHF to plummet towards Fibonacci marker at 1.2095 – DBS Bank
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GBP/CHF has adhered to a series of lower highs, since it reversed from a 1.3856 peak registered in April 2018. Benjamin Wong, Strategist at DBS Bank, expect the pair to suffer further downside towards the Fibonacci marker at 1.2095.
GBP/CHF continues to display a longstanding series of lower highs
“EUR/CHF is clearly making a move lower, ramifications of a bearish head and shoulders top that has been affirmed. This should provide impetus for GBP/CHF to attempt lower, as it breaks under the support line of a sideway consolidation in place since July.”
“GBP/CHF is approaching trend support that connects 1.1116 through 1.1683 around 1.2406 lows.”
“The pattern to work is a bearish rectangle set-up. As long as GBP/CHF does not recover well beyond the flat top’s 1.2857 resistance, this pattern is intact on the intermediate time frame. A second attempt to break trend support would reignite bearish potential towards the order of the 50% Fibonacci retracement of 1.3074-1.1116 range grip that calibrates at 1.2095.”
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