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09.12.2013 12:56 PM
GBPCHF takes out 1.4550/60 support. Expect a pullback towards 1.4780/1.4800

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Technical outlook and chart setups:

The currency pair reversed sharply from the 1.4900 levels last week as expected and also took out the immediate support in the 1.4550/60 area as depicted here. It is quite possible that the pair rallies from here on towards the 1.4800 levels, before continuing to drift lower further. Resistance is the 1.4800/20 level, followed by 1.4900 levels; while support levels are spread through 1.4350/1.44, followed by 1.4200 and lower respectively. Aggressive trade setup would be to go long now for a 250-300 pip rally towards 1.4800 levels and then reverse positions. The entire structure has begun to show signs of a huge reversal and a break of the lower support trend line would confirm the same.

Trading recommendations:

Conservative: Sell at 1.4800, set stop at 1.4950

Aggressive: Buy now, set stop at 1.4550, target is at 1.48.

Good luck!

Summary
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