Weekly Trading Signal : GBPCHF

GBPCHF: BUY

 

 

There is an interesting scenario on the GBPCHF, and this is something that may herald the beginning of a new lease of northward bias. For the most part of this year so far, the price was in a major downtrend. Last week, the price reached a low of 1.39646, being unable to go lower than that demand zone. Since then the price has been trudging upwards. Towards the end of the last week, the price crossed the EMA 56 to the upside but failed to uphold that action in the near-term. Nevertheless, the price surged upwards again at the beginning of this trading week as it crossed the EMA 56 to the upside and closed above it (trying to trend further northwards). Almost at this same time, the RSI period 14 crossed the level 50 to the upside and has remained so since then. Price moves in waves, and market biases tend to come out where major demand and supply zones are violated. The initial medium-term target for this trade is the supply zone around 1.48491. Should the price drop below the demand level around 1.40491, this particular outlook would be invalid.

Chart: 4 hour

CLICK HERE TO REGISTER FOR FREE ON ADVFN, the world's leading stocks and shares information website, provides the private investor with all the latest high-tech trading tools and includes live price data streaming, stock quotes and the option to access 'Level 2' data on all of the world's key exchanges (LSE, NYSE, NASDAQ, Euronext etc).

Follow @ItuGlobal

This area of the ADVFN.com site is for independent financial commentary. These blogs are provided by independent authors via a common carrier platform and do not represent the opinions of ADVFN Plc. ADVFN Plc does not monitor, approve, endorse or exert editorial control over these articles and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ADVFN.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ADVFN.COM and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Authors may or may not have positions in stocks that they are discussing but it should be considered very likely that their opinions are aligned with their trading and that they hold positions in companies, forex, commodities and other instruments they discuss.

WHAT IS ADVFN?

ADVFN covers all things stock market.

From the news and opinion pieces on pages like this to share discussion forums, charting tools, financials, live share prices and Level 2, order book data

If you trade or invest ADVFN has the tools you need to make the right decisions.

• 

  101 Ways to Pick Stock Market Winners

  You need the number one bestselling investment guide, the definitive text for day traders, investors and stock pickers.

• 

  The Death of Wealth

  Dissecting the global economy and the financial markets, the book lays out the evidence for the next economic game changer: the Death of Wealth.

• 

  Neto Trade Analysis Department

• 

  Ella Mason

• 

  Capital Spreads

• 

  Susan Marmor