The Pound Swiss Franc.

Good afternoon Dynamic Traders,

This afternoons chart for you to analyse is of the GBPCHF.

This could be in a position for a short but would be an aggressive stance for the following reasons.

It does presently stand with all short, medium and longer term trends down and the lows of November and December being broke, but the low of October has not been tested yet and is only a couple of hundred pips away.

Price is below the V.I. which is another reason for looking at the short trade as this is a criteria of the 'smart money' traders but as can be seen from the chart below price is currently channelling.

Other reasons favouring the short side are that price has broken a resistance area of 1.7000 to 1.6500 and is also in DD parameters now with RSI below 50.

As mentioned it is aggressive due to reasons mentioned above and also because MACD convergence is evident with fibonacci revesals just south clustering with extensions but this would mean a reversal of the trend and as you know this should be our friend.

Keep an eye on this and should your confluences be met act accordingly.

As always please ensure to do your own analysis before taking any trades.

Charts courtesy of AdvancedGet.

Good luck.

Clayton Farnworth.