Technical Outlook:

It is necessary to consider that  that more than 50% of highs and lows will be tested. GBP/CHF is considered as classic example. The bulls indicated the doors again (for the 4th time) remaining quite weak at 1.4620 level yesterday. This movement confirms the suggestion that bears are expected to break through in the nearest future as it is shown on the chart below. It is recommended to remain short; major resistance are located at 1.4790 levels.

 Chart Setup:

The above charts clearly show that the Right Shoulder has been tested time remaining still relevant. Furthermore yesterday was a full dark cover cloud or The Engulfing Bearish signal as one seen before. there is no doubt that it is recommended   to remain short, as breakdown is expected at the moment. The downside targets are seen at 1.3950 levels and further at 1.3790 levels for the nearest future.

Trade Recommendations: No Change

Sell @ 1.4520/40, Stop @ 1.4790, Target1 @ 1.3950, Target2 @ 1.3790.

Best Regards,