Patterns: EUR/GBP, USD/CHF

Dukascopy Bank Team Dukascopy Bank SA

EUR/GBP 4H Chart: Two scenarios likely

The common European currency has been trading in a one-month descending channel pattern against the British Pound. The currency pair tested the 0.9000 mark during last week's trading session.

Currently, the exchange rate is trading near the upper line of the one-month descending channel and could be set for a breakout.

If the breakout occurs, a surge towards the 0.9200 level could be expected during the following trading sessions.

However, if the channel pattern holds, bears would continue to dominate the currency exchange rate within this week's trading sessions.

USD/CHF 4H Chart: Bears could prevail

The US Dollar has been edging lower in a descending channel pattern against the Swiss Franc since September 25. The currency pair breached the 0.9100 level during the Asian session on Tuesday.

All things being equal, the USD/CHF exchange rate is likely to continue to trend in the descending channel pattern during the following trading sessions. Bearish traders could target the 0.9000 level this week.

However, a support line at the 0.9050 area could provide a barrier for bears during the following trading sessions.

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Dukascopy Bank Team

Dukascopy Bank SA

Dukascopy Bank stands as an innovative Swiss online banking institution, with its headquarters situated in Geneva, Switzerland.

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