GBPCHF: Targets Further Upside Gains On Corrective Recovery (Week Ahead)

GBPCHF: With the cross following through higher on its hammer candle pattern the past week, further corrective recovery offensive is likely in the new week.This development is coming on the back of a halt in its broader weakness at 1.1465 in early August’2011 and its subsequent recovery. Resistance on further recovery lies at the 1.3435 level, its July 22’2011 high with a violation of that level allowing for further strength towards the 1.3584 level, its July 08’2011 high.  Further out, resistance comes in at the 1.3695 level, its July 04’2011 high. Its weekly RSI is bullish and pointing higher suggesting further strength. Alternatively, a break and hold below the 1.1465 level will reverse its corrective strength and set the stage for a run at 1.1400 with a break of that level paving the way for a push further lower towards the 1.1300 and the 1.1200 levels, all representing its psycho level. All in all, though GBPCHF remains broadly biased to the downside in the long term, it faces further corrective recovery in the near term.

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