Technical outlook and chart setups:
The GBP/CHF pair reacted well on the technical direction laid out earlier and the fundamental trigger helped it achieve the down target at 1.2800/50 levels as expected. The pair has been looking to produce a flat correction (a-b-c), and should rally through 1.3600/3800 levels to complete the same. Please note that fibonacci 0.618 resistance is seen at 1.3800 levels as well, and a bearish reaction there would be ideal to initiate short positions again. The trend looks to be set lower already, but a retracement should be expected now. It is hence recommended to remain long (aggressive trade setup) now, with risk below 1.2800 levels. Immediate support is seen at 1.2850 levels, while resistance is at 1.3500 levels on a 4H chart scale. Bulls are expected to remain in control at least for short term.
Trading recommendations:
Remain long now, stop below 1.2800, a target 1.3600/3800.
Good luck!
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