Partner Center Find a Broker

Will the triangle support hold for this pair?

I’m looking at the potential catalysts that could spur either a bounce or a break.

But first, check out the headlines that rocked the markets in the last trading sessions:

Fresh Market Headlines & Economic Data:

  • New Zealand headline retail sales up 2.5% vs. projected 1.8% drop in Q1
  • New Zealand core retail sales up 3.2% vs. expected 1.0% decline
  • Asian shares shaky ahead of U.S. inflation data due later on
  • China to tighten supervision of commodity market
  • German and French banks closed for Whit Monday

Upcoming Potential Catalysts on the Economic Calendar:

  • BOE Governor Bailey’s testimony at 2:30 pm GMT
  • FOMC member Bostic’s speech at 4:30 pm GMT

What to Watch: GBP/CHF

Daily U.S. Session Watchlist: GBP/CHF
GBP/CHF 1-hour Forex Chart

This pair has formed lower highs and found support around the 1.2700 handle, creating a descending triangle pattern on its 1-hour chart.

Will buyers defend current levels?

Technical indicators are looking mixed, with the moving averages hinting at a breakdown and Stochastic reflecting a return in bullish pressure.

It could all boil down to Guv’nah Bailey’s upcoming speech, as he could drop hints about the central bank’s plans to taper asset purchases.

The BOE head honcho is scheduled to testify along with other MPC members, on the Monetary Policy Reports before the Treasury Select Committee. Hawkish remarks could be enough to spur a strong bounce for GBP/CHF back to the triangle top at 1.2750 minor psychological mark or higher.

An upside break could be followed by a rally that’s at least the same height as the triangle pattern. Similarly, a move below support could trigger a drop that’s roughly 120 pips in size.