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 |
As the British pound rebounded after holding above indicated support at 1.6317, retaining our bullishness that further consolidation above 1.6118 support would take place and break of 1.7113 resistance would bring stronger rebound to the Ichimoku cloud bottom (now at 1.7299) and then 1.7352 (61.8% Fibonacci retracement of 1.8114-1.6118) but reckon 1.7500 would limit upside.
On the downside, expect pullback to be limited to the Tenkan-Sen (now at 1.6676) and bring such a rebound to the aforesaid upside targets. A weekly close below this line would shift risk to downside again for test of 1.6317 support but only break there would signal the decline from 1.8114 has resumed and bring retest of 1.6118, break of 1.6118 support would confirm the rebound from 1.5122 has ended at 1.8114 earlier, then further weakness to 1.6000 would follow. Looking ahead, it is necessary to see a breach of support at 1.5849 to signal resumption of medium term downtrend from 2.4967 (2008) for further fall to 1.5600 thereafter.
On the daily chart, although sterling retreated after last week's rise to 1.7036, as renewed buying interest emerged right at the Tenkan-Sen and has risen again, suggesting a test of resistance at 1.7113 would be seen, once this resistance is penetrated, this would confirm an upside break of recent 1.6118-1.7113 range has taken place, then stronger retracement of the decline from 1.8114 would extend gain to 1.7200, then towards 1.7352 (61.8% Fibonacci retracement of 1.8114 to 1.6118).
On the downside, expect pullback to be limited to the Tenkan-Sen (now at 1.6834) and bring such a rise to aforesaid upside targets. Only a daily close below the Ichimoku cloud top (now at 1.6804) would prolong choppy trading and risk weakness to the Kijun-Sen (now at 1.6676) and possibly towards the Ichimoku cloud bottom (now at 1.6616).
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