Based on the position trading strategy noted in the weekly report, we’ve sold GBP/CHF on break of 1.2971 this week.
Overall outlook is unchanged with the cross staying well below falling 55 day EMA. It’s also held well inside medium term falling channel from 1.3854. This decline fall from 1.3854 is expected extend to 61.8% projection of 1.3854 to 1.3049 from 1.3265 at 1.2768 as first target.
There is prospect of further decline to 100% projection at 1.2460 before bottoming. But we’ll monitor downside momentum in the current fall to gauge the chance.
Stop will be put slightly above today’s high at 1.3040.
