The Pound Sterling has diminished in trading range against the Swiss Franc during the past two-week, thus forming a new descending channel. The lower boundary of this pattern was tested yesterday.
After reaching the monthly support level near the 1.3552 area, the GBP/CHF currency pair began to appreciate. Meanwhile, the rate has breached the weekly pivot point at the 1.3627 mark.
Furthermore, in the four-hour time frame, technical indicators are still strongly in favour of bearish sentiment.
Everything being equal, it is expected that bulls prevail in the market during the following trading sessions, thus sending the pair for a test of a resistance cluster set by the combination of the 55-, 100– hour SMAs and the weekly PP at 1.3673.
