GBP/CHF experienced a V-shaped rebound from the low of 1.0185 formed in September 2022. The first wave of the up-move found stiff resistance near 1.1500/1.1580, representing the 61.8% retracement from May 2022. Economists at Société Générale analyze the pair’s technical outlook.

1.1000 expected to act as an important support

The pair has entered a phase of wide consolidation in the form of a rectangle, consisting of flattish upper and lower bands. The downside has so far remained contained near 1.1000 which is expected to act as an important support.

Currently, a pullback is underway, however, the recent pivot low of 1.1140 should cushion the downside.

GBP/CHF is expected to head towards the upper limit of the multi-month range near 1.1500/1.1580. Once this is overcome, an extended uptrend is likely towards 1.1710 and the trend line drawn since 2021 at 1.1800.