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Technical analysis of GBP/CHF for February 01, 2016

Technical outlook and chart setups:

The GBP/CHF pair looks to be preparing for a drop lower towards 1.4300 levels, before resuming its rally. The pair is trading around 1.4569 now following hitting a high of 1.4660. Please also note that the pair has pulled back from the Fibonacci 0.382 resistance level (a drop from 1.5570 to 1.4120). It is hence recommended to remain short with risk at the level of 1.4685. Immediate interim resistance is seen at 1.4660, while support is seen at 1.4300 followed by 1.4125. A corrective drop from current levels should be followed by a rally towards 1.5/1.51.

Trading recommendations:

Stay short now with stop at 1.4685, a target is at 1.4300.

Good luck!

The material has been provided by InstaForex Company - www.instaforex.com