USD/CHF trading strategy
August 9, 2011
Fresh from a 200+ pip drop, a retracement is already unfolding for the pair which should be completed at 1.6290. The United Kingdom might not be financially sound but the current downward pressure of the US dollar would greatly contribute to the rise of this pair. In the long term perspective, the GBP/USD pair is already trending sideways at its 0.382 retracement level from a high of 2.11 back in 2008 to its 2009 low. Target price of 1.7320 may be attainable should the pair stray away from its current range.
Three lower lows from its August 7 peak at 1.64 suggests a continued downward momentum heading below the 1.60 level. A retracement to 1.6280 is likely and would also serve as a good entry level for a short position.