GBP/CHF just caught a bounce off a familiar support level, but the real question is how far it can climb before the bears come sniffing around again.
We’re zooming into the 4-hour chart to see if the pound’s making a comeback or just catching its breath before heading back down!
GBP/CHF 4-hour Forex Chart by TradingView
Traders are dipping a toe back into risk as U.S. tariff policy hangs in the air, giving the British pound a little room to run against safe havens. Hopes for a stronger U.K. GDP print on Friday aren’t hurting either, with Sterling starting to look a bit more attractive.
Meanwhile, the Swiss franc is losing some of its shine as safe haven alternatives like the U.S. dollar and the Japanese yen recover some of their recent losses.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your fundie homework on the British pound and the Swiss franc, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
GBP/CHF had been sliding all week, but finally caught its footing near 1.0775, right where it bounced earlier this month.
Will GBP/CHF’s bounce gain momentum? Or are the bears just taking a breather?
We’ve got our eyes on the 1.0875 area, which lines up with the Pivot Point (1.0847) and the neckline of a possible Double Bottom pattern on the 4-hour chart. The 1.0900 psychological level could also draw some attention, since it’s hanging around the 100 SMA and a trend line that’s been capping gains since late May.
If buyers can push through those zones and hold it, the pair could make a run toward 1.0950 or even the 1.1000 area that traders have been watching.
But if price stalls and turns south again, or if it breaks below the July lows, then the downtrend is still the dominant story, and deeper losses might be in the cards.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
