At the end of the week, we go back to Forex analysis. The Swiss franc is a currency you should always watch long term. It is competing with the world’s biggest currencies to get a chunk of the central reserves.
The pound sterling is also having a good time recently as it’s strengthening against the major currencies. Take a look at our analysis.
The current USDCHF structure shows that the market has been moving down for a long time within a large yellow channel.
After several attempts to break through the lower yellow line, the bears weakened. Then we saw a smooth rise in the price and the formation of an uptrend, which describes the green channel.
Not so long ago, at the intersection of the upper lines of the two channels, there was a rebound in the price and its decline began.
It is possible that the market growth will continue and the bulls will be able to reach the resistance level of 0.926, which is on the upper yellow wall. If they manage to break through it, the price growth will continue even higher to the next resistance level of 0.931, located on the green line.
There is also an alternative option in which the market will move in a downward direction to the lower green line. If the support level of 0.903 breaks, the market will open a path to the lower yellow wall and the support level of 0.884.
The EURGBP currency pair forms an uptrend that moves within a large green channel.
Last month, we saw a sharp jump from the lower green line to the upper green line. After the rebound from the upper green wall, the construction of a small downtrend began, in which the yellow channel describes the price behavior.
At the time of writing, the market is in the center of the yellow channel.
If the price decline continues, the currency pair will be able to reach the lower wall and the support level of 0.893 again. If this level is broken, we may see a continuation of the decline to the lower yellow line and the level of 0.886.
But there is a chance that the bulls will try to get closer to the upper green line again. If the price rises in the near future and breaks the resistance level of 0.913, which is on the yellow wall, then the assumed scenario may be confirmed, and the bulls will push the price up to the next resistance level of 0.934.
