FOREX ALERTS >>
DailyFX Plus Login

topheadline

Article

GBPCHF : The Beginning of a Big Decline
Friday, 27 July 2007 18:02:30 GMT  |  Jamie Saettele, Technical Currency Strategist
Delicious
Facebook

An important Fibonacci level along with a key reversal week strongly indicate that the GBPCHF is resuming the longer term decline that began in April 2000.

COT 07-27-2007a

COT 07-27-2007b

The GBPCHF surged through the 2.4757 January high and has reversed over 200 pips since making a high at 2.4963.  The long term structure indicates that this could be a major turning point.  The 61.8% of 2.7319-2.0928 is at 2.4778 and the rally from 2.0928 is a 3 wave correction.  We are expecting a decline to at least 2.3288 over the coming months.  Near term bearish target is at 2.4308.

COT 07-27-2007c

This is another weekly chart, but in candlestick form.  This week’s candle is a key reversal week.  This happens when price makes a new high but closes below the previous candle’s close (in this case…the previous candle is the previous week).  This is a reversal pattern and also occurred at the January peak.

COT 07-27-2007d

The GBPCHF is approaching trendline support that began in early March.  This level could offer some support but a break puts the July low at 2.4308 in jeopardy.      

More Articles

Feedback Form