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 rebounded to 1.7113 (exactly same level as previous resistance), as the currency pair retreated after failing to break this resistance, suggesting further consolidation within recent range of 1.6118-1.7113 would take place and weakness towards 1.6400 is likely, however, said lower level should hold, bring recovery. Only breach of support at 1.6118 would signal the correction from 1.5122 has ended at 1.8114 earlier and extend weakness to 1.6000 later.
On the upside, although recovery to 1.6800 cannot be ruled out, reckon the Kijun-Sen (now at 1.6978) should hold and bring further consolidation. Only a breach of resistance at 1.7113 would bring stronger rebound to the Ichimoku cloud bottom (now at 1.7367) and then 1.7352 (61.8% Fibonacci retracement of 1.8114-1.6118) but reckon 1.7500 should continue to hold, bring another decline probably in late Q1
On the daily chart, although sterling rose briefly to 1.7113 earlier, the British pound quickly retreated after failing to break this resistance and renewed selling interest emerge again at 1.7011 and continued to move lower. This fall from 1.7113 suggests further consolidation within 1.6118-1.7113 would take place and mild downside bias is seen for weakness to 1.6500 and possibly 1.6400, however, reckon support at 1.6317 would hold from here and bring rebound later this month.
On the upside, expect recovery to be limited to 1.6780/85 and the Tenkan-Sen (now at 1.6829) should hold, bring such a decline to aforesaid downside targets. Only a daily close above the Tenkan-Sen would suggest retreat from 1.7113 has possibly ended there and stronger rebound to 1.6930/40 would follow but only break of 1.7011 resistance would confirm, then retest of 1.7113 resistance would follow which is likely to hold on first attempt
|
