USD/CHF Daily Outlook
Daily Pivots: (S1) 0.9544; (P) 0.9577; (R1) 0.9593;
Intraday bias in USD/CHF remains neutral as it’s staying in range of 0.9521/9648. On the downside, break of 0.9521 minor support will indicate rejection by 0.9626 key fibonacci resistance. Intraday bias would then be turned back to the downside for 0.9432 support first. Break there will also confirm completion of rebound from 0.9186 and turn outlook bearish. On the upside, sustained break of 0.9626 will be another evidence of larger reversal. In this case, further rise would be seen to next fibonacci level at 0.9900.
In the bigger picture, fall from 1.0342 is seen as a medium term down trend. Main focus is on 38.2% retracement of 1.0342 (2016 high) to 0.9186 (2018 low) at 0.9626. Sustained break there will add to the case of trend reversal and target 61.8% retracement at 0.9900 and above. However, rejection from 0.9626 will maintain medium term bearishness for another low below 0.9186.
GBP/USD Daily Outlook
Daily Pivots: (S1) 1.4085; (P) 1.4124; (R1) 1.4171;
Intraday bias in GBP/USD remains on the upside for 1.4243 resistance. Break will target a test on 1.4345 high next. On the downside, below 1.4075 minor support will turn intraday bias neutral first. But outlook will stay cautiously bullish as long as 1.3964 support holds.
In the bigger picture, as long as 1.3651 resistance turned support holds, medium term outlook in GBP/USD will remain bullish. Rise from 1.1946 is at least correcting the long term down trend from 2007 high at 2.1161. Further rally would be seen back to 38.2% retracement of 2.1161 (2007 high) to 1.1946 (2016 low) at 1.5466. However, GBP/USD fails to sustain above 55 month EMA (now at 1.4267) so far. Break of 1.3651 will be the first sign of medium term reversal and turn focus to 1.3038 support for confirmation.
