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Not sure whether you want to buy or sell the pound this week?

Take a look at GBP/USD and GBP/CHF’s setups to help make up your mind!

Here’s what I have on their 4-hour and daily charts:

GBP/CHF: 4-hour

GBP/CHF 4-hour Forex Chart
GBP/CHF 4-hour Forex Chart

GBP/CHF has climbed almost steadily since late December when the pair broke above an established downtrend.

What makes the setup interesting today is that price is lining up with a trend line support AND the 50% Fibonacci retracement of the last downswing.

Can the pound extend its uptrend against the franc? The odds are on the bulls’ side with the 100 SMA also supporting GBP/CHF’s current prices.

Momentum above the consolidation could lead to a revisit of January’s highs near 1.2600.

A clear break below the trend line, on the other hand, opens GBP/CHF up to a dip down to the 200 SMA and 1.2350 inflection points.

GBP/USD: Daily

GBP/USD Daily Forex Chart
GBP/USD Daily Forex Chart

Is GBP/USD about to confirm its breakout?

Cable broke above a descending channel last week but pound bears rallied around the 1.3700 psychological handle and rejected further appreciation near the 200 SMA.

GBP/USD is now retesting the broken channel support and it looks like there are enough bulls to sustain prices above the broken resistance.

Does this mean that GBP/USD is headed higher? Look for momentum above the pound’s current levels and a possible breakout beyond the 200 SMA.

1.3850 is an area to watch for the bulls but you can also aim higher if there’s enough bullish pressure.

Not feeling the love for the pound? You can also consider shorting GBP/USD if the pair dips and consistently trades inside the channel again.