GBP/CHF is forming a potential bearish reversal pattern ahead of the UK PMI this week!
Is the pair heading towards its June lows? Or will it find support from a previous area of interest?
We are checking out the 4 hour chart today!
GBP/CHF currency pair on 4-hour chart Chart by TradingView
In case you missed it, the Swiss Franc was one of the biggest winners last week after a round of risk-off and dollar aversion in the markets.
On the other hand, the pound lost some points against some of its peers after the UK recorded weak data on employment and retail sales activity in June.
Remember that directional biases and volatility in market prices are usually driven by fundamentals. If you haven’t done your homework on the GBP/CHF yet, it’s time to check out the economic calendar and stay up to date with the daily fundamental news!
The GBP/CHF pair, which has turned lower from its June highs, is currently trading above the psychological level of 1.1500 and is around where the pair consolidated earlier this month.
Is GBP/CHF set to see further losses? Or are we seeing a reversal of the pair’s upward trend since mid-June?
The GBP/CHF currency pair is showing what looks like a head and shoulders pattern on the 4-hour time frame with the “neckline” of the pattern aligned with the 1.1450 turning point.
Sustained trading below the “neckline” could attract enough selling pressure to drag GBP/CHF below the 1.1400 level and possibly gain enough momentum to revisit the June lows at 1.1250.
But if GBP/CHF sees bullish candles and then momentum from its current consolidation, the pair could head towards the July highs at 1.1625 if not new multi-month highs.
Watch this unification closely, my friends in the Forex market!