Trade view /
14 February 2018 at 7:57 GMT
Looking at a long GBPCHF set up today. With the Eurozone GDP due for release in the morning session, and CHF being near -1 correlated with the euro, we are looking for some aggressive price action. This is a counter-trend trade. Although the setup is high risk, we also have a favourable risk/reward ratio.
Monthly: The move higher has been mixed and volatile, common in corrective formations. Price is being capped by the Ichimoku cloud.
Weekly: Bearish outside week posted at the high. We are in an Ending Wedge formation. Trend line support is seen at 1.2720. The medium-term bias remains bearish.
Daily: The most important timeframe for this counter trend call. Weekly bespoke support is seen at 1.2955. Previous support is seen at 1.2955. An exhaustion count has been posted on the intraday chart. Bespoke resistance is located at 1.3100. We then have a further trend line barrier lining up with the 61.8% extension level at 1.3270 where we would look to close out any long balances.
Management and risk description
Entry: long at 1.2980 (prime entry 1.2955 BEFORE THE GDP FIGURES)
Target: 1.3100 and 1.3270
Time horizon: short-term counter trend
— Edited by Clare MacCarthy
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