GBP/CHF Candlesticks and Ichimoku Analysis
|
Last Candlesticks pattern |
Time of formation |
Trend bias |
| Weekly |
Morning star |
Dec 2008 |
Down |
| Daily |
N/A |
N/A |
Sideways |
Although the British pound slipped again after faltering below resistance at 1.7113, break of 1.6315/20 is needed to signal the decline from 1.8114 has resumed and bring retest of 1.6118, otherwise, further choppy consolidation would take place and recovery to the Tenkan-Sen (now at 1.6715) is likely but only a breach of resistance at 1.7113 (this would also penetrate the Kijun-Sen at 1.7104) would confirm the aforesaid fall has ended, then stronger rebound to 1.7352 (61.8% Fibonacci retracement of 1.8114-1.6118) would follow.
On the downside, break of 1.6118 support would add credence to our previous bearish view that the rebound from 1.5122 has ended at 1.8114 earlier, then further weakness to 1.6000 would follow, however, break of support at 1.5849 is needed to confirm medium term downtrend from 2.4967 (2008) has resumed and further fall to 1.5600 would be seen thereafter.
On the daily chart, although sterling extended recent decline from 1.7113 to as low as 1.6317 earlier this week, the rebound from there suggests low has possibly been formed and once price is able to close above the Ichimoku cloud top (now at 1.6715) on a daily basis, this would confirm the decline from 1.7113 is over, then further gain to 1.6900 would follow but it is necessary to see a breach of next resistance at 1.7024 to retain near term bullishness for another corrective rise to 1.7113 later.
On the downside, in the event price fails to penetrate the upper Kumo, then retreat to 1.6400 cannot be ruled out, however, only break of this week's low at 1.6317 would extend aforesaid fall from 1.7113 towards key chart support at 1.6118, once this level is broken, this would confirm our view that the entire correction from 1.5122 has indeed ended at 1.8114, then swift fall to 1.6000 would follow.
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