Patterns: USD/CHF, GBP/CHF
|USD/CHF 4H Chart: Poised for a breakout
The US Dollar has been constrained by a descending channel against the Swiss Franc after hitting a resistance at the 200—hour simple moving average on January 10.
The currency pair has been bouncing between the upper and lower boundaries of the junior channel. However, there could be a breakout through the upper boundary during the next trading days.
If the USD/CHF pair moves past a resistance cluster set by the combination of the 55- and 100– hour SMAs, the rate could be heading for the weekly R1 at 0.9397.
GBP/CHF 4H Chart: Trading sideways
During the past few weeks, the British Pound has been depreciating heavily against the Swiss Franc. The depreciation occurred after the pair hit the weekly R1 at 1.3439.
The Pound Sterling has stopped its decline and has been in a period of consolidation. As can be observed on the chart, the currency pair has been trading inside a rectangle since February 9.
A breakout from the rectangle is expected to occur to either direction in the nearest time. In the meantime, technical indicators suggest that bears could grow stronger.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.