27.01.201111:40 Forex Analysis & Reviews: GBP/CHF candlestick analysis for January 27, 2011

Long-term review

This information is provided to retail and professional clients as part of marketing communication. It does not contain and should not be construed as containing investment advice or investment recommendation or an offer or solicitation to engage in any transaction or strategy in financial instruments. Past performance is not a guarantee or prediction of future performance. Instant Trading EU Ltd. makes no representation and assumes no liability as to the accuracy or completeness of the information provided, or any loss arising from any investment based on analysis, forecast or other information provided by an employee of the Company or otherwise. Full disclaimer is available here.

On a 4-hour graph the ПИЗ.СРА pair is rolling back after it could not break the support level 1.4850.
Earlier on a 4-hour graph the GBP/CHF has formed candlestick combination Falling Three Methods, which indicates downside movement, confirmed further.
The breakthrough of the support level 1.5100 and the Fibonacci correction level 38.2 proves this viewpoint.
At the moment the pair is testing the support level 1.4850. If it is broken, downside movement targeted at 1.4400 should be expected.
This candlestick combination shows that the currency pair had been demonstrating upside movement for several weeks after an unsuccessful attempt to break the support level 1.4400. However, it reversed near 1.5400. This implies that the bears became more active at this point and the bulls could not solidify here.
It is worth mentioning that stop loss should be placed slightly above 1.5192 as the breakout of this level will target the GBP/CHF to 1.5400.

Back to the list

Open trading account

InstaForex analytical reviews will make you fully aware of market trends! Being an InstaForex client, you are provided with a large number of free services for efficient trading.