GBPCHF : The Beginning of a Big Decline

The GBPCHF surged through the 2.4757 January high and has reversed over 200 pips since making a high at 2.4963. The long term structure indicates that this could be a major turning point. The 61.8% of 2.7319-2.0928 is at 2.4778 and the rally from 2.0928 is a 3 wave correction. We are expecting a decline to at least 2.3288 over the coming months. Near term bearish target is at 2.4308.

This is another weekly chart, but in candlestick form. This week?s candle is a key reversal week. This happens when price makes a new high but closes below the previous candle?s close (in this case?the previous candle is the previous week). This is a reversal pattern and also occurred at the January peak.

The GBPCHF is approaching trendline support that began in early March. This level could offer some support but a break puts the July low at 2.4308 in jeopardy.