GBPCHF stalled at moving average resistance
By examining the weekly chart of GBPCHF, we can see how the pair has bounced sharply from 1.1670 zones following the collapse of the famous decision from Swiss bank.
Actually, we classify the retrace from 1.1670 to 1.5190 as a corrective rally where traders has stopped by SMA50 and SMA100.
Coming below 1.4360, marked by 23.6% Fibonacci retracement of the above-mentioned wave is a sign for resuming the downside scenario that should be added to the past week’s candlestick.
Momentum indicators’ representative-RSI14- has stabilized below the value of 50.00, while Aroon remains negative, reinforcing our constructive bearish outlook.
Finally, any short positions should be protected by stop loss at 1.4410- just 50 pips above 23.6% Fibonacci level- and for short-term traders, the high of last week at 1.4700 should act as a ceiling.