GBPCHF stalled at moving average resistance

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.

gbpchf-weekly-05-05

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.

Amir El Araby

Co-Founder & Chief Global Strategist at FxComment.com, with 17 years’ experience in the technical analysis studies for FOREX, Commodities and Indices. Amir El-Araby worked as a mentor for many companies and institutes, where he presented new methods for trading in the financial market. Amir is a member of ESTA (Egyptian Society of Technical Analysts). Amir is also the official partner of Harmonic Trader (Mr Scott Carney) and the official instructor of harmonic trader association for Arab countries.

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