The Pound has been guided by two ascending channels against the Swiss Franc. The senior formation began a year ago, while the junior one has confined the rate since early October. The rate bounced off its four-month high of 1.3324 last Wednesday and has since returned near the 1.31 mark. As apparent on the chart, the rate has been testing the bottom boundary of the junior channel for the past week. This indicates that the Sterling could be ready to breach the given pattern to the downside. This move would be in line with the senior pattern. It is possible that the nearest downside target is the weekly or monthly S1s at 1.2970 and 1.2914, respectively. Nevertheless, technical indicators suggest that the Pound might still edge slightly higher in this session, possibly up to the 1.3250 mark prior to starting to move south.
