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The British pound continued to struggle against the US dollar, but managed to gain bids against the Swiss franc. However, there are a few important bearish signs developing on the hourly chart of the GBPCHF pair, which might take it lower in the near term. There is one more aspect, as there is a critical support formed around the 1.5280 level, which is a barrier for sellers. We need to see how the pair trades in the coming days and when liquidity returns. The Swiss might continue to remain under pressure due to the SNB action.

There is an expanding triangle formed on the hourly chart of the GBPCHF pair, which recently acted as a support for the pair. The triangle support also coincided with the 38.2% Fibonacci retracement level of the last leg from the 1.5020 low to 1.5398 high. However, there is a bearish sign as well, because the pair is now trading below the 100 hour moving average. Furthermore, the hourly RSI has also moved below the 50 mark, which might encourage sellers in the near term. There is a chance of a spike lower in the near term, which might find support around the triangle.

Overall, more gains are likely in the short term. A break above the triangle might call for the British pound buyers to take control. A close above the 1.5400 could take the pair towards the 1.5440-60 resistance area.

Overall, one might consider buying dips as long as the pair is above the trainable support area.

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Posted By IKOFX Technical Team: Online Forex Broker
Website – Ikofx