Patterns: GBP/CHF, EUR/CHF
|GBP/CHF 1H Chart: Falling wedge pattern in sight
The GBP/CHF exchange rate has been trading within a falling wedge pattern since the middle of May.
From a theoretical point of view, it is likely that the currency pair could continue to decline within the given pattern until the beginning of August. Then, a breakout north could occur.
Meanwhile, note that the exchange rate could gain support from the 55-, 100– and 200-hour SMAs in the 1.1840. Thus, a breakout north could occur sooner, and the rate could target the Fibo 38.20% at 1.2181.
EUR/CHF 1H Chart: Short-term increase expected
The EUR/CHF currency pair has been trading downwards, guided by a descending trend line.
Given that the exchange rate could gain support from the 55-, 100– and 200-hour moving averages, it is likely that some upside potential could prevail in the market.
Meanwhile, note that the currency pair could face the resistance level formed by the Fibo 23.60% at 1.0859. Thus, it is likely that a reversal south could occur, and the pair could decline to the 1.0500 level.
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