Technical outlook and chart setups:
The GBP/CHF pair dropped lower below 1.3880 levels yesterday, taking stops out on long positions. The pair is still holding above the 1.3700/25 interim support, but we will need more evidence here to confirm that the bullish setup remains intact and trades can be committed on the long side again. The drop from 1.4250/75 levels still looks to be corrective in nature and the pair might be producing an up gartley here. The gartley normally terminates at the fibonacci 0.786 support and then resumes the rally sharply. It is recommended to stay flat for now but an aggressive trade setup would still warrant long positions against 1.3700 levels. Immediate support is seen at 1.3725 levels, while resistance is seen at 1.3950 levels respectively.
Trading recommendations:
Aggressive traders might want to remain long with stop at 1.3700 levels. A conservative setup would be to wait for further confirmation.
Good luck!
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