GBP/CHF is testing a key support zone after hitting resistance at 1.0675!
Is the pair headed for new December lows?
Or will the bulls step up and keep the pair inside a range?
GBP/CHF 4-hour Forex Chart by TradingView
The Bank of England cut interest rates by 25 basis points earlier this week. But the decision leaned hawkish for the pound, with a split vote and forward guidance pointing to fewer rate cuts in 2026. Sterling initially pushed higher on the announcement but failed to hold those gains, giving back most of the post-BOE rally by the end of Thursday.
The Swiss franc lacked any meaningful domestic data to drive fresh buying, but it did not need much help. Global growth concerns, rising geopolitical tensions, and expectations for Fed rate cuts continued to push investors toward safe-haven assets. That backdrop kept demand for the franc supported, even without a strong local catalyst.
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 has been finding support near the 1.0600 psychological level since late November, and is now back at that support zone after turning lower from the 1.0675 area.
And why not? The 1.0675 region lines up with a previous resistance and the Pivot Point at 1.0673 on the 4-hour time frame, making it a natural area for sellers to show up.
Watch for sustained trading below the 1.0600 mark. That would also place GBP/CHF below its 200 SMA and mark fresh December lows. A downside break could invite more bearish pressure and drag GBP/CHF toward lower inflection points like 1.0550 or even 1.0500.
On the other hand, another bounce from 1.0600 could keep GBP/CHF trading inside a potential 150 pip range between 1.0600 and 1.0750. Bullish candlesticks and a renewed push toward the 1.0675 resistance could attract buyers and lift GBP/CHF toward higher areas of interest like 1.0700.
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.
