The Pound was trading in a channel down against the Swiss Franc before breaching this pattern on Monday. The rate halted at 1.2274 in the middle of the channel and subsequently formed a minor up-trend. It likewise breached the 55-hour SMA from below and is currently being supported by this line. In addition, the pair’s movement has been stranded in a broadening formation since early June. Taking into account these signals, the base scenario favours the Pound appreciating against the Franc for the following two weeks. The closest significant resistance levels are the monthly PP and the 200-hour SMA at 1.2425 and 1.2445, respectively. In shorter term, however, the British currency may try to make a rebound from the upper channel boundary circa 1.2300.
