GBP/CHF – For the fifth day in succession the trend of lower highs from the January 6 peak held yesterday. An intra-day pattern of selling bounces has been established and the cross broke beneath 1.4400, reinforcing negative intra-day momentum studies. In view of these facts our call is bearish below 1.4470. The immediate profit target is yesterday’s low at 1.4347 then 1.4300 and 1.4178, the low for the past two weeks.
The risk to this call is a break back above 1.4470, the trend of lower highs from the January 6 peak. Gains above here would indicate that bullish sentiment is stronger than initially assessed and generate additional buying to 1.4550 and then towards 1.4588/98, the highs for February 16 and February 6.
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