An update on our GBP/CHF short position, sold at 1.2971 (prior post here). 61.8% projection of 1.3854 to 1.3049 from 1.3265 at 1.2768 first target is met. But there is no sign of bottoming yet, in spite of oversold condition. We’ll stay short but lowers the stop to 1.2820 (slightly above 1.2816 minor resistance) to lock in some profits.
Theoretically, if the decline from 1.3854 is an impulsive move, the current 1.2768 projection level should be taken out with ease, without hesitation. That is, GBP/CHF should either power lower, or reverse from here. So, tightening the stop will give it no mercy should there be a rebound.
Next target is 100% projection at 1.2460. Note that this projection level is close to 61.8% retracement of 1.1638 to 1.3854 at 1.2485. Hence, we’ll take all profit and exit if 1.2500 is met (slightly above 1.2460 and 1.2485).
