Getting ready to short the GBPCHF

Last week I wrote about the GBPCHF, since the Bank of Switzerland intervention I haven’t traded this one, but right now, it is certainly shouting “short me” (at least that’s what I see, do you see something else?)

It traded for a while in a short term range around an important long term level, but earlier this morning it broke the lower extreme of the range. This triggered a bearish condition and it is more likely to reach the next LT level, which is at 1.3809:

My plan is:

Wait for the GBPCHF to retrace back to the ST resistance level (green level), if it forms a significant pattern with downward pressure I’ll go short.

Trade safe!

Raul Lopez
Forex Course