I'll be scouring the charts for "actionable masterpieces". These will be signficant chart patterns or set-ups that I feel are not only tradeable, but also have a high probability of making big profits with little risk. Whenever I spot an "actionable masterpiece", I will post an annotated chart (my chart art) along with an explanation. My goal is to help you learn how to spot these low ocurring but highly profitable "actionable masterpieces" yourself.
Sell GBP/CHF
This pair's recent rally seems to have been a minor correction and look for the downtrend to resume. There is hidden bearish divergence with price making a lower high while the oscillator makes a higher high. This support trend continuation, which for this pair, is DOWN.
In regards to fundamentas, the pound seems to be getting hammered these days as it continues to release sucky economic numbers, most recently its retail sales.
I believe any Sterling gains represent a short-term correction rather than a longer-term recovery as the overall fundamentals are most likely to deteriorate further.
The market expects the Bank of England to cut interests during the first quarter of 2008 and continue cutting throughout the year - all which is bearish for the good ol' pound. On Thursday, the BoE is scheduled to release an interest rate statment which has the potential to accelerate more GBP weakness.
The Swiss franc is considered a defensive currency.With the market still unsure how overall global growth will be affected by the US slowdown and weakening dollar, this should limit selling pressure on the franc as investor stick their money here as a "safe haven".
I'm going to sell now at 2.1970. My stop loss (SL) will be 2.2010. I see 2.2000 handle as resistance. My profit target (PT) will be 2.1800, its recent low.
Sell GBP/CHF @ 2.1970 | SL: 2.2010 | PT: 2.1800
