The GBP/CHf has been trading in a descending channel since hitting an 18 month high in July 2012. The pair seems to be faithfully moving down 200-300 pips before reversing and moving up about the same distance, essentially creating a nice range for trading, and some beautiful trading opportunities along the way. Each lower high has resulted in a bearish daily pin bar at the top of the channel, and an bullish engulfing scenario at the bottom, more or less. Yesterday we saw a minor pin bar form on the open and close prices for June 05 & 06 respectively, now a minor support level. I'm not convinced that the bulls will be taking the reigns just yet however, and a break of yesterday's low at 1.4815 will probably see prices continue to the bottom of the channel, or at least December's low at roughly 1.4700. A bearish extension from there will see the pair hit the Weekly S2, which perfectly joins the bottom of the channel. Resistance is very strong at 1.4850 so a close above yesterday's high could mean we will see a mid-channel bullish reversal and head back up to 1.4900 with the EMA62 at 1.4925 offering resistance below the Weekly R1 at 1.4957.
Happy Trading!