The British Pound has traded in a clear upward trend against the Swiss Franc since the start of the year. On at least three previous occasions, the pair has hit support only to revert back to trend. Currently, GBPCHF finds itself at or near one of these foundational levels. We may be underestimating the level at which the pair may, if the trend continues to hold, bounce back.
From a technical level, this trade may have some downside potential. If one looks at the two tops, in early-February and in mid-April, one may see that the latter is slightly lower than the former. Such price action may be a sign that selling pressure may be rising at an increasing rate as time moves onward.
