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Technical analysis of GBP/CHF for May 06, 2016

Technical outlook and chart setups:

The GBP/CHF pair is seen to be trading at 1.4040 levels at this moment, looking to continue rallying towards 1.4709 levels going forward. Also note that the pair has formed a morning star candlestick pattern on the daily chart as seen here, indicating a potential reversal ahead. The current rally that has begun from 1.3400 levels is only a countertrend rally, which is expected to terminate at 1.4700/50 levels going forward. It is hence recommended to remain long for now, with risk at 1.3800 levels. Immediate support is seen at 1.3800 levels, while resistance is at 1.4700 levels respectively. Bulls are expected to remain in control till the prices stay above 1.3800 levels.

Trading recommendations:

Remain long for now, stop at 1.3800 levels, target is open.

Good luck!

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