Patterns: GBP/CHF EUR/CHF
|GBP/CHF 1H Chart: Medium-term channel in sight
The GBP/CHF exchange rate has been trading upwards within the ascending channel since the end of January. Currently, the rate is testing the lower channel line at 1.2610.
From a theoretical perspective, it is likely that a reversal north could occur in the nearest future, and the currency pair could target the upper channel line in the 1.2860 area. If the given channel holds, it is likely that the pair could trade within it in the medium term.
However, note that the exchange rate is pressured by the 200-hour SMA near 1.2720. Thus, some downside potential could prevail in the market, and the rate could re-test the support level—the Fibo 38.20% at 1.2525.
EUR/CHF 1H Chart: Two scenarios likely
The EUR/CHF currency pair continued to trade within the falling wedge pattern (4H time-frame chart). The pair has already declined below 1.0700.
From a theoretical point of view, it is likely that a breakout north could occur within the following trading sessions. In this case the exchange rate could target the psychological level at 1.0800 in the medium term.
However, note that the currency pair is pressured by the 55-, 100– and 200-hour SMAs, currently located in the 1.0620 area. Thus, some downside potential could prevail in the market, and the pair could reach the lower boundary of the long-term ascending channel at 1.0500.
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