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Hallo, mes amis!

We’re zooming in on the European crosses today because GBP/CHF is on a short-term downtrend while EUR/GBP looks ready to bounce.

What do you think?

GBP/CHF: 1-hour

GBP/CHF 1-hour Forex Chart
GBP/CHF 1-hour Forex Chart

GBP/CHF is consolidating near the 1.2650 minor psychological handle, which isn’t surprising since it’s right smack at a descending channel resistance that’s been around since mid-September.

Can the pound bears extend GBP/CHF’s downtrend? Shorting at current levels would give you the best risk ratio if the pound ends up retesting its September lows.

Not confident in the pound falling further against the franc?

You can also buy GBP but you’ll probably want to do it after GBP/CHF breaks above the channel resistance that we’re watching.

1.2750 is a good initial target for the bulls but you can also aim for 1.2800 if you see enough bullish pressure.

EUR/GBP: 4-hour

EUR/GBP 4-hour Forex Chart
EUR/GBP 4-hour Forex Chart

What’s better than a retest of a support? A support retest that looks like it’s gonna hold again!

EUR/GBP is poppin’ up wicks and indecision candlesticks around the .8500 psychological handle, yo!

In case you missed the big blue highlight, the bulls have only dropped the defense of the level once since mid-July.

This time around, there’s also an oversold Stochastic signal to support the bulls.

Think the euro is due for another bounce against the pound? Bulls can buy at current levels and aim for September’s highs.

Of course, you can also wait for some kind of bounce or bullish pressure if you’re not sure about EUR/GBP seeing another upswing.