Technical outlook and chart setups:
In continuation to what was discussed yesterday on the short term chart view, please note that the GBPCHF pair has dropped lower to the fibonacci 0.786 support levels of the previous rally between 1.2860 and 1.3070 levels. A bullish reversal from here would keep the structure intact and push prices towards 1.3070 and higher. On the flip side, a drop below 1.2860 levels would prove to be extremely bearish going forward. Please note that GBPCHF pair has completed 5 waves impulse from the lows at 1.2860 levels earlier, through 1.3070/80 levels as depicted here. Furthermore, the pair has also produced a corrective drop (3 waves) towards 1.2880 levels now as seen here. It is seen to be trading 1.2900 levels at this moment, looking to still produce a rally going forward. It is hence recommended to remain long for now with risk at 1.2850 levels. Immediate support is seen at 1.2850 levels while resistance is seen at 1.3070/80 levels respectively. Bulls are expected to remain in control from here on, till prices stay above 1.2850.
Trading recommendations:
Remain long for now, stop at 1.2850, and target 1.3250.
Good luck!
The material has been provided by InstaForex Company - www.instaforex.com