Time to buy GBPCHF?

Looking at GBPCHF we have a wonder technical set-up potentially aligning itself for tonight. While on the daily, cyclicity is making higher highs and higher lows in a strong upward trend off the back of the weakening Swiss Franc (which has been declining in strength against GBP since the Swiss National Bank’s intervention of September last year), we have a retest of a level of previously broken resistance – as support. This is correlating wonderfully with yet another test of the previously respected 50 ema and the formation of a double bottom on the hourly timeframe. 

Daily:

 

 Hourly:

 So, in favour we have:

1. Cyclicty

2. Higher highs and higher lows

3 Continuing respect for the 50 ema

4.A previously broken level of resistance as support

5. A reversal on the hourly timeframe.

6. It’s a 50% fibonacci retracement of the previous swing low to swing high!

The odds are stacked in favour of a long – without a doubt. 

Target? I’ll leave this one up to you. What kind of person are you?

We can trade it as an inside bar break (long). If you are a high probability, low(er) reward kind of chap or chapess – then I’d recommend taking profit at the previous swing high’s high (circa: 15432. If are happier with a lower probability in exchange for a higher reward then I recommend the technical level of 15754 which correlated with a Fibonacci extension of 2.00.