[B]My picks:[/B] Short GBP/CHF on Break Below 1.7650
[B]Expertise:[/B] Fundamentals Combined With Technicals
[B]Average Time Frame of Trades:[/B] 1 Day - 1 Week
GBP/CHF has been holding above a rising trendline throughout May and June, and with the pair now trading close the line at 1.7650, this may provide an opportunity to buy. However, with risk aversion still a force to be reckoned with in the markets, I prefer to hold back and look for a break below the noted trendline. I’m looking toward the 200 SMA at 1.7334 as an initial target and 1.7000 as a secondary target (psychological support, the 100 SMA, and fibonacci support).
Looking to my pick from yesterday, I said that I was looking for chances to sell the JPY crosses, and noted upside potential for AUD/JPY upon a break above 78.25/38. By the end of the day, we still hadn’t seen such a move and the pair seemed to have lost steam, so I sold it around 17:20 ET and the increase in risk aversion this morning has obviously worked in my favor. I’ve closed half the position and moved the stop on the other half to breakeven, but overall my outlook on the JPY crosses remain bearish on a longer-term basis and I will still look to sell rallies.