1.2660 remains pivotal for GBP/CHF

With a bearish structure on the weekly chart and potential H&S top on the daily, we’re looking for an eventual breakdown.

We can see on the weekly chart that GBP/CHF remains in a long-term bearish trend. There have also been four failed attempts to break above the 200-week eMA, with the most recent attempt being the week of the UK elections in December. Given the following week was a bearish engulfing candle and its most bearish in 5 months, it’s possible the market has topped.

However, we’d need to see a clear break of the 1.2660 before assuming trend continuation, which leaves it vulnerable to a bounce beforehand.


Switching to the daily chart, GBP/CHF has found support above the June high along with the 100 and 200-day eMA’s. With the 100 above the 200 eMA and sloping higher, there’s potential for a bounce over the near-term. Therefor bulls may want to consider trading the range and entering close to the lows around 1.2700 and target the zone of resistance around 1.2855 / 93.

However, if momentum wanes near the highs and signals price action is trying to top out, then bears could look to fade into moves below the resistance zone. Due to the bearish structure of the weekly chart, an eventual break lower is favoured. So we’re on the lookout for a break below 1.2600 as this would clear the current range and the 100 and 200-day eMA’s.


  • Whilst prices remain between 1.2663 – 1.2890, range trading strategies are preferred (long at the lows, short at the highs)
  • A break below 1.2660 confirms a head and shoulders top (and also clears the 100 and 200-day eMA’s)
  • If successful, the H&S projects an approximate target around 1.2200.

Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.

Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.

The markets are moving. Stop missing out.

OPEN AN ACCOUNT