Technical outlook and chart setups:
The GBP/CHF pair has made highs at 1.2850/60 levels and is seen to be trading at 1.2820 level at this moment, looking to retrace lower. Please note that on short-term chart view (1H), it looks to be preparing to retrace lower before resuming higher. The wave structure reveals that the rally from 1.2450 levels has completed 5 waves (impulse) at 1.2850/60 levels, indicating a meaningful bottom formation at 1.2450 going forward. If this wave count holds true, the next move should be 3-wave corrective drops lower 1.2600 levels and then turn higher again. It is hence recommended to exit long now and turn short with risk above 1.2870. The pair should remain in control of bears for short term till prices stay below 1.2870/80 levels going forward. Immediate resistance is seen at 1.2860 level, while support is at 1.2450 level respectively.
Trading recommendations:
Short now, stop is above 1.2870, target is at 1.2600. Then turn long again.
Good luck!
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