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    GBP/JPY Still a chance to rally! - Analysis for July 6, 2012


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    USD/CHF is expected to consolidate in a lower range. USD/CHF is undermined by the broadly weaker dollar undertone and the franc demand on the buoyant CHF/JPY cross. But the USD/CHF losses are tempered by the negative Swiss interest rates and the threat of the SNB to carry out CHF-selling intervention.

    Technical comment:

    The daily chart is mixed as the MACD is in bearish mode, but stochastics is neutral, inside-day-range pattern was completed on Friday.

    Trading recommendations:

    The pair is trading below its pivot point. It is likely to trade in a lower range as far as it remains below the pivot point. Short positions are recommended with the first target at 0.9535. A break of this target will move the pair further downward to 0.95. The pivot point stands at 0.9615. In case the price moves in the opposite direction and bounces back from the support level, it will move above its pivot point. It is likely to move further to the upside. According to that scenario, a long position is recommended with the first target at 0.9635 and the second target at 0.9665.

    Resistance levels: 0.9635 0.9665 0.9690

    Support levels: 0.9535 0.95 0.9465

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