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. 
 
GBPCHF
 
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
 

 


 

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