The British Pound has been trading in channel up against the Swiss Franc during the past two weeks. The pair has already provided two upside confirmations, while the last trough failed to reach the bottom channel line. This points to a diminishing trading range that could actually transform the given channel into an ascending wedge.
Meanwhile, the Pound has remained near the upper channel boundary, thus testing the 50.0% Fibonacci retracement for the last two sessions.
Gradually decreasing technical indicators, however, suggest that bears might soon prevail the market and push the pair towards the combined support of the 55-, 100– and 200-hour SMAs, the 38.1% Fibo and the weekly PP in the 1.2922/1.2880 territory.
Even though this area might hinder the pair for some time (or even push the Pound higher), it is expected that the rate eventually breaches it and tests the dotted line apparent on the chart.
Meanwhile, the Pound has remained near the upper channel boundary, thus testing the 50.0% Fibonacci retracement for the last two sessions.
Gradually decreasing technical indicators, however, suggest that bears might soon prevail the market and push the pair towards the combined support of the 55-, 100– and 200-hour SMAs, the 38.1% Fibo and the weekly PP in the 1.2922/1.2880 territory.
Even though this area might hinder the pair for some time (or even push the Pound higher), it is expected that the rate eventually breaches it and tests the dotted line apparent on the chart.