Consolidation Hints Further Decline for GBP/CHF

By Tomasz Wisniewski|

Published: June 10 2024, 07:02 GMT+0

Consolidation Hints Further Decline for GBP/CHF

In today’s technical analysis, let’s delve into the British Pound to Swiss Franc (GBP/CHF) pair, which has been consolidating after a significant drop. Initially, there was a false breakout above a key resistance level marked in yellow. This false breakout, highlighted in orange, suggests a long-term bearish signal as buyers failed to sustain above the yellow support.

Currently, the price is testing a black uptrend line, with a sideways consolidation marked in blue. This consolidation, especially after a substantial drop and a false breakout, indicates a potential further slide. The expected scenario is a breakout from this sideways trend to the downside.

As for the target, the 50% Fibonacci retracement level seems reasonable. This level has acted as support in April and resistance in February 2024. Therefore, a move towards this level would align with historical price action and current technical signals.