GBPCHF: With a weekly higher close recorded the past week, the cross now looks to build up on its recovery gains triggered from the 1.1465 level in the new week. This if seen will leave the 1.4296 level, its May 22’2011 high as the next upside target with a violation of there setting the stage for a push further higher towards its May 20’201 high at 1.4363. Further out, the 1.4548 level, its May 08’2011 high comes in as another upside target. Its weekly RSI is bullish and pointing higher suggesting further strength. On the downside, support on pullbacks stands at the 1.3710 level, its Sept 20’2011 low followed by the 1.3533 level where we expect a reversal of roles as support to occur and turn the cross higher in the direction of its nearer term uptrend. However, a failure of this to materialize will call for more weakness towards the 1.3128 level and subsequently the 1.2519 level. All in all, with the cross breaking and holding above its key resistance at 1.3533, the risk is for further upside offensive to continue in the new week.
