I spent last few hours going over the charts, after I had given it a rest over the weekend. Unfortunately, picture didn’t get any more clear. The pound looks very encouraging after this large bounce late on Friday. Question is – is it enough? I mean, does it really indicate beginning of some substantial rally in GBP? My views on GBP-JPY are known, I’ll be buying it on upside breakouts of short term charts. But what else?
I’m not ready to commit myself to anything substantial, but this here doesn’t look half bad.

There is a small gap down on the open, I would have preferred to be an up gap, but I’m willing to take a small trade and break above 1.8645. These are very tentative steps, just to the water, so I’m looking for no more than 100 pips. I don’t want to just enter it at the market, because it might easily fall right back down to test Friday’s low, and the distances are so large. These kind of swings are only great if you are on the right side of them. Being on the loosing end, doesn’t feel good at all. That’s why I want the GBP-CHF “prove” to me that it indeed wants move up, by breaking 1.8645.
I’d like to see the daily ranges to contract a little, and I think we will see it. This would make short term trading less challenging since smaller price swings dictate more reasonable stops and targets.

Mike K.