Patterns: USD/CHF, GBP/CHF

Dukascopy Bank Team Dukascopy Bank SA

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.

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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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