GBPCHF is South-bound – Weakened Industrial Output Expectation delivers short-selling opportunity

Summary:

The GBP has posted underwhelming figures as recent Industrial Trends runs lower orders and exports with the data release showing -3 variation from forecasted on CBI Industrial Trends Orders and -12 difference from previous on CBI Industrial Price Export Orders. The glooming data triggered GBPCHF to trade lower by -1.75% from previous candle low in just two days. The dump has opened up a short opportunity at the premium range of the impulse.

SELL GBPCHF

EXP

EXPIRED

1.14150

Entry Price

1.11862

1.14649

1.10075 +0.00159 +0.14%

Pips

EXPIRED

1.11862

1.11825

Exit Price

1.14150

Entry Price

1.14649

Technical Analysis

GBPCHF is South-bound – Weakened Industrial Output Expectation delivers short-selling opportunity_1

The daily timeframe of the Pound Swissie has painted a clear change of trend—with the base of the move being an expansionary consolidation as depicted through the wicks prior through the strong bearish candle. The conviction of the market to move further down is represented through the breaking of the December 7 pivot low and November 30 Old Pivot Low. As of the moment, the team is anticipating a possible retracement up. Prior to the next impulse.

GBPCHF is South-bound – Weakened Industrial Output Expectation delivers short-selling opportunity_2

Narrowing down to our entry timeframe, the team expects a decent retracement to the 61.8% retracement level—ultimately recovering inefficient pricing caused by the sudden flush of the GBPCHF. Our team is looking at an entry along 1.14070 area as it is in well confluence with the turncoat resistance and Fibonacci retracement level—and in addition, is supplemented by the tailwinds of the recent unfavorable CBI data which weakened GBP’s turnaround capabilities. With so, we are flagging 1.14073 as the start of sell zone with a stop loss of 1.14649 and a take profit level of 1.11862—offering an above 3 RR.

SELL LIMIT RANGE 1.14073 – 1.14321

STOP LOSS – 1.14649

TP – 1.11862

TYPE OF TRADE : SWING (1 WEEK DURATION)

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GBPCHF is South-bound – Weakened Industrial Output Expectation delivers short-selling opportunity

Technical Analysis

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