Wednesday, March 25, 2009

GBP-CHF moves down from resistance

Daily chart of GBP-CHF - Price pulls back from resistance line

GBP-CHF has once again faced resistance at the downward sloping resistance line from Nov 2008.
Having bounced lower from it a few days back, again over yesterday & today price has moved lower from the line. Price should now aim for the lower support line of the triangle.

Here is the 4 hour chart. Thing to notice is that each time price it turning away to the downside further and further away from the trendline. This might be construed to be traders having an overall more bearish stance & thus looking to shorts as soon as price nears anywhere near resistance. It could find temporary support at the trend line marked here, but any bounce off it should be used to sell into.