Technical outlook and chart setups:
The GBP/CHF pair dropped to the area around 1.4150 yesterday before bouncing back sharply towards 1.4350. The pair is trading around the level of 1.4300 at the moment, with bulls poised to stage an impressive rally potentially above 1.4700 at the coming sessions. It is hence recommended to hold long positions taken earlier and added at 1.4150 with risk at 1.4050. Please also note that the pair has bounced off the fibonacci 0.618 support of the rally between the level of 1.3800 and 1.4650 as depicted here. Furthermore, the engulfing bullish candlestick pattern produces and indicates a potential reversal higher. Immediate support is seen at 1.4150 (interim) followed by 1.4000 and lower. Resistance is seen at 1.4400 and higher respectively.
Remain long for now, stop is at 114050, a target is open.
The material has been provided by InstaForex Company – www.instaforex.com