MARKET SEEN WELL SUPPORTED INTO 1.7500’S; LOOK TO BUY
Gbp/Chf: One of our favorite trades at the start of 2009 and was to look to take advantage of an oversold Sterling against both the Euro and Swissie at any chance and on any dip. This strategy has proven to be a rewarding one and with plenty of time to go until the year end, we continue to recommend buying Sterling on dips on the mentioned crosses. Currently, this cross has been undergoing a period of weakness over the past several days, resulting in a material pullback from the 1.8100 area to 1.7600 thus far. However, these setbacks are still classed as corrective and we ultimately favor bullish resumption back towards 1.8100 over the coming days. The market seems to be very well supported in the 1.7500’s and with the 78.6% fib retrace coming in just under 1.7550, we will look to take advantage of any additional intraday pullbacks to look to establish a fresh long position. STRATEGY: BUY @1.7550 FOR AN OPEN OBJECTIVE, STOP @1.7350. RECOMMENDATION TO BE REMOVED IF NOT TRIGGERED BY NY CLOSE (5PM ET) ON MONDAY.
Written by Joel Kruger, Technical Currency Strategist for DailyFX.com
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