GBP/CHF Bearish Correction in the Making
December 16th, 2009 Posted in Technical Analysis
Name: Anton
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Last week’s bullish movement in GBP/CHF pair has pushed a number of technical indicators into the over-bought territory. As I will demonstrate below, the price of GBP/CHF may very well be heading for a reversal. Forex traders can take advantage of this impending movement by having their Entry Orders in place to capture this reversal. Don’t forget your Stops and Limits!
• Point 1: The Slow Stochastic indicates a bearish cross, signaling that the next move may be in a downward direction.
• Point 2: The Relative Strength Index (RSI) indicates that the price of this cross currently floats in the overbought territory, signaling downward pressure.
• Point 3: The Williams Percent Range has peaked at the 0 marker, which means that there may actually be a strong level of downward pressure.
GBP/CHF Daily Chart
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Tags: Forex, forex blog, GBP/CHF, Pound, RSI, Slow Stochastic, Sterling, Technical Analysis
