The daily GBP/CHF chart shows the market respecting a declining channel. There is a near-term pivot near 1.4365 that is about to be broken. A swing projection using the length of the previous swing targets 1.4080. We can say 1.4080-1.41 is a target zone.
The 4H chart shows a market that has choppy momentum. Although price action continues to establish lower highs and lows, the RSI shows that momentum has not been very directional. With that in mind, we have to monitor the next support pivot near 1.4265. There could be a short-term reaction here. But with that cleared, we are looking at the 1.4170 lows and the the 1.4080-1.41 swing projection.
Failure to break below 1.4265 basically preserves a bullish impulse wave structure and therefore reflects. Therefore if the market respects 1.4265, and a rally follows breaking back above the 1.4370 pivot area, we would have to reconsider the bearish outlook for a flat or even bullish one. A break above the 1.45 level again should be a confirmation of the bullish outlook at least toward the 1.4685 pivot.
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Fan Yang CMT is a trader, educator and the Chief Technical Strategist for FXTimes – provider of Forex News, Analysis, Education, Videos, Charts, and other trading resources.
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