2026-02-12 03:12:00
GBP/CHF looks set to extend a weeks-long downtrend!
Will the pair draw in bearish pressure in the next trading sessions?
Here’s what we’re seeing on the 4-hour time frame:
The British pound ran into trouble earlier this week as traders ducked into the safe haven Swiss franc. Uncertainty ahead of key U.S. data kept nerves on edge, and brief political noise around PM Starmer did not help matters.
Meanwhile, the franc enjoyed a tailwind from broad U.S. dollar weakness as markets positioned for softer retail sales. But that bid faded quickly after a surprise upside beat in January’s jobs report, which cooled demand for safety and took some shine off CHF.
Remember that directional biases and volatility conditions in market price are typically driven by fundamentals. If you haven’t yet done your homework on the British pound and the Swiss franc, then it’s time to check out the economic calendar and stay updated on daily fundamental news!
GBP/CHF, which has been trading inside a descending channel pattern since early January, has seen steady demand near its 1.0450 February lows and is now trading closer to the 1.0500 psychological level.
What makes this area stand out is that it lines up with the middle of the channel as well as the 38.2% to 50% Fibonacci retracement levels of February’s downswing. On top of that, 1.0500 acted as support in late January.
Decisively bearish candlesticks following that large 4-hour rejection wick could send GBP/CHF back toward its February lows near 1.0450, if not fresh monthly lows closer to the S2 at 1.0406.
On the other hand, an extension of yesterday’s upswing could push GBP/CHF above mid-channel resistance and open the door to channel highs near 1.0550 or the 1.0570 Pivot Point line.
Whichever bias you end up trading, don’t forget to practice proper risk management and stay aware of top-tier catalysts that could influence overall market sentiment.
Disclaimer:
Please be aware that the technical analysis content provided herein is for informational and educational purposes only. It should not be construed as trading advice or a suggestion of any specific directional bias. Technical analysis is just one aspect of a comprehensive trading strategy. The technical setups discussed are intended to highlight potential areas of interest that other traders may be observing. Ultimately, all trading decisions, risk management strategies, and their resulting outcomes are the sole responsibility of each individual trader. Please trade responsibly.
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