This pound pair has been forming lower highs connected by a falling trend line since mid-June, but it looks like this resistance zone is being challenged.
Will it bounce or break next?
Check out this area of interest I’m watching on the 4-hour time frame:
GBP/CHF 4-hour Forex Chart by TradingView
Safe-haven flows on trade uncertainty have propped up the lower-yielding Swiss franc over the past months while rising BOE easing expectations have dragged the U.K. currency south.
However, GBP/CHF appears to be struggling to break below the 1.0700 major psychological support, forming what seems to be a triple bottom reversal pattern.
Can the pair break above the neckline near the 1.0800 mark soon?
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!
Sterling could take cues from the upcoming BOE monetary policy decision, as hints of further easing could bring fresh downside pressure enough to drag GBP/CHF down to new lows near S1 (1.0630).
On the other hand, a strong rally past R1 (1.0750) and the 1.0800 handle could clear the way for a move up to R2 (1.0850) then R3 (1.0900) next.
Note that Switzerland’s latest CPI reading came in flat, slightly better than the projected 0.1% dip, but likely enough to keep SNB on dovish footing. And don’t forget that the Swiss economy has been slapped with higher U.S. tariffs recently, too!
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.
