The Swiss Franc has been on a tear lately, and the Sterling – well let’s just say it hasn’t been so well! Things might change for Cable soon as the UK reported a better than expected Trade Balance number at -6.2B versus the forecast of -7.0B. On the chart, we see that the pair has dropped past the 61.8% Fibonacci retracement area and found support at the 76% level.
With the stochastics starting to turn in the oversold territory, I would like to go long, but I will wait for the pair to retrace back to 2.3560 before doing so.
Long GBP/CHF at 2.3560, stop at 2.3460, pt1 at 2.3680, pt2 at 2.3800, pt3 at 2.3900
Remember to never risk more that 1% of your account on any single trade, so please adjust your position sizes accordingly.
With a 100 point stop and a target of almost 300 pips, this trade has a great risk-to-reward ratio and it will be a longer term trade. Stay tuned for updates! Good Luck!
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