Daily Forex Update: GBP/CHF

The Swiss Franc remains one of the strongest currencies trading against the U.S. Dollar and the gold market. The strength of the Franc has allowed it to also rally against the Pound Sterling, and the Franc's strength over the Pound is currently seen on the GBP/CHF. The succession of lower highs on the 60-minute time frame has allowed a Falling Wedge pattern to form - this pattern has broken lower through downtrend line support at 1.4 944 (E), which has triggered an Autochartist Continuation of the Trend (ACT) short-sell entry in an unexpected market environment. The two-bar Autochartist Initial Trend reading is low, indicating a sideways, narrow range. This short-term momentum lower is, therefore, not necessarily an expected move, nor one that should be expected to last. The fact that the pattern broke lower with very little bearish momentum (as confirmed by the one-bar Breakout reading) means that the move is not expected to trend further down through past support.