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GBPCHF is showing signs of a temporary top

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Monthly: The move from the year 2000 to the 2015 lows, could be seen as an Elliott Wave 5 wave bearish count (impulse). If this is the case, then we are in the corrective formation higher. The most important factor to take away from this timeframe is the fact the Ichimoku Cloud continues to stall (cap) buying.  

IG GBPCHF M.png

 

Weekly:  Levels close to 1.3414 continues to find sellers. This was the low (support) from Q2 2016, now becomes resistance. Last weeks price action formed a bearish Outside Week, often an indication that a top is in place. The move higher from 2016 has been mixed and volatile and could be seen as a bearish Ending Wedge formation. Trend line support is seen at 1.2660

IG GBPCHF W.png

 

Daily: A lot to takeaway in this timeframe:

  1. A possible ‘double top’. A break of 1.3118 is needed to confirm
  2. Ending wedge. A clear break of 1.3215 is needed. The measured move target is then 1.2745
  3. Bearish outside day, sometimes highlights the top of a trend.

IG GBPCHF D.png

 

Intraday (30-minutes) – With intraday signals for sentiment now at oversold extremes, there being a possible 5 wave count near completion and bespoke support at 1.3183, we only look to sell into rallies. Bespoke resistance is seen at 1.3325, close to the middle of the last congestion zone.

IG GBPCHF 30.png

 

In regards to the PIA analysis, no representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result.

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