GBP/CHF 4h Chart: Falling Wedge

GBP/CHF has formed a falling wedge pattern on the four-hour chart valid since early May. Nevertheless, only until recently the pair provided the second necessary confirmation by testing the upper wedge boundary. The rate failed to overcome the given level due to the 100-period SMA that provided enough resistance to push the Pound lower. The British currency is expected to depreciate against the Swiss Franc in line with the wedge pattern. From the downside, the pair is limited by the weekly and monthly S1s and the weekly S2 at 1.2305, 1.2261 and 1.2160, respectively. It is likely that these levels may hinder the pair for some while and even trigger a minor U-turn, however, the general trend should still remain bearish.