It can be seen from the four-hour chart that the GBP/CHF pair is trading in a downtrend below the 200 and 50 exponential moving averages.
A short-term decline in the GBP/CHF has been extended to 1.12983 after the pair retreated from the resistance line of the falling channel, which lines up with the 50-EMA. This pair appears to be experiencing persistent bearish momentum after falling below the 1.12983 barrier, with sellers intending to target the next support level at 1.12578 in an effort to take control of the market further. If this barrier failed to contain the downward movement, a failure of this level would also mean that the price could continue tumbling to test the 1.12080 level of interest, which is in line with the channel's lower border.
Alternatively, if buyers break the channel and cross the 50-EMA, a substantial move above the 1.14269 level could turn the outlook to bullish, with the market refocusing its attention on the 1.15262 level around the 200-EMA after the break.
A sustained bearish bias is reflected by short-term momentum oscillators. RSI, however, posts a reading below 30 in the oversold area, suggesting a short-term rebound due to the exhaustion of sellers. While, momentum is falling in the selling area, and MACD bars are getting taller below the signal line.
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