GBPCHF: Dip buying close to channel support

Ian Coleman FXStreet

Technical

Monthly: A bearish Elliott Wave pattern (5-waves) was compete at the 2011 low of 1.1462. Price action is holding within a triangle formation (109months of mixed trading). Trend of higher lows is located at 1.1966.

Weekly: For the last 106 weeks we have held within a bullish channel formation. The trend line support is currently located at 1.2695. Dips below this level are finding buyers. Last weeks Marabuzo level is located at 1.2817.

Intraday (one-hour): Bespoke resistance is located at 1.2745. With this are likely to complete the first bullish Elliott Wave count (5), we would then look for a correction to the downside. A projected channel base can be seen a 1.2675. We look to by dips for a medium-term call.

Action:

We look to Buy at 1.2675

Stop: 1.2600

Targets:1.3000 and 1.3140

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Author

Ian Coleman

FXStreet

Ian started his financial career at the age of 18 working as a Junior Swiss Broker at Godsell Astley and Pearce (London). He quickly moved through the ranks and was Desk Manager at RP Martins at the age of 29.

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