Notable decline is seen in GBP/CHF today and it’s now pressing a head and shoulder neckline support, as well as 55 day EMA. Considering bearish divergence condition in 4 hour MACD, 1.1574 is likely a short term top. Fall from there should be correcting whole rebound from 1.0183. Deeper fall is now in favor as long as 1.1410 resistance holds.
Firm break of 1.1243support will complete a head and shoulder top (ls: 1.1393; h: 1.1574; rs: 1.1410). In such case, further fall should be seen to 100% projection of 1.1574 to 1.1243 from 1.1410 at 1.1079 and below.
Stronger support should be seen from 38.2% retracement of 1.0183 to 1.1574 at 1.1043 to contain downside to bring rebound, at least on first attempt.
However, strong break of 1.1043 will open up deeper decline to 161.8% projection at 1.0874, which is close to 1.0893 support, before bottoming.
