This franc pair is sitting right on the very bottom of a descending triangle pattern visible on the daily time frame.
Can this major support level hold?
GBP/CHF Daily Forex Chart by TradingView
Now that the SNB refrained from lowering interest rates into negative territory, the Swiss franc was able to draw a bit more support enough to drag GBP/CHF to its long-term triangle support.
This potential floor lines up with S1 (1.0660) and has been keeping losses in check since 2024!
Will buyers hop in at these levels?
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the Swiss franc and the British pound, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
Look out for reversal candlesticks at the triangle bottom, as a bounce could take GBP/CHF back up to the resistance around the 1.0800 major psychological mark and pivot point (1.0810).
Sustained upside momentum past the triangle top could even spur a rally to the bullish targets at R1 (1.0960) then R2 (1.1110) near the June highs.
On the other hand, long bearish candlesticks closing below current levels could suggest that further downside to S2 (1.0520) then S3 (1.0370) could 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.
