GBP has seen a large short interest the last week(s) and this will most likely continue due to the not so stellar expected growth in the UK.
Technically the GBP has been going south against the CHF for some time now and has recently broken through a fairly strong support level 1.4600 - 1.4630. It retested that region a few times (8th, 11th and 13th of January) with an other strong break lower on the 15th.
Given the volatility of the pair, I expected a move back to 1.45 (supported by a possible consolidation of the pound after its strong move down this week). If this corrective move stays below 1.46, which is strong resistance now, further downside upside is not expected. I remain cautious till the PA confirmes that 1.45 holds if the price gets their next week.
Technically the GBP has been going south against the CHF for some time now and has recently broken through a fairly strong support level 1.4600 - 1.4630. It retested that region a few times (8th, 11th and 13th of January) with an other strong break lower on the 15th.
Given the volatility of the pair, I expected a move back to 1.45 (supported by a possible consolidation of the pound after its strong move down this week). If this corrective move stays below 1.46, which is strong resistance now, further downside upside is not expected. I remain cautious till the PA confirmes that 1.45 holds if the price gets their next week.
Trade active:
Order triggered at 1.4505.
Comment:
Trade is still open. Since I manage the trade manually my stop wasn't hit because I monitored the PA. Given that it stayed below 1.46 and we have a spinning top on the daily. This still has the potential to go down.
Trade closed: target reached:
Price moved higher than expected not unmanageable and target got hit at 1.4220 on the 11th.
