Technical analysis of GBP/CHF dated 27.09.2012
GBP/CHF with creating the bottom price of 1.49893 and recording of it by the next candles provided a situation for ascending. From the top price of 1.54656 to the bottom price of 1.49893, AB=CD harmonic pattern with ideal ratios of 76.4 and 127.2 is observable, which is one of the reasons for recent ascend. Right now the price reached to the descending trend line that is made of three peak prices.
As it is obvious in the picture below, the formation of upper long shadows in ascending candles shows the cautious of the buyers and notice of traders to this descending trend line. Right now the price is testing it. The first sign of ascend in this currency pair is closing of ascending candles in daily time frame. According to the closing of candles in last week time frame, there is the possibility of the breakage of this trend line. stoch indicator is in saturation sell area and shows the possibility of ascend by the next cycle. Generally until the top price on the descending trend line is preserved (fourth point), there is the possibility of descending of the price during next days.