GBP/CHF is forming a possible bearish reversal pattern ahead of this week’s U.K. PMI releases!

Will the pair head for its June lows? Or will it find support from a previous area of interest?

We’re checkin’ out the 4-hour chart today!

GBP/CHF 4-hour Forex Chart by TradingView

In case you missed it, the Swiss franc was one in all the largest gainers last week following a round of risk aversion and U.S. dollar weakness within the markets.

Alternatively, Sterling lost pips to a few of its counterparts after the U.K. printed weak employment AND retail sales activity for June.

Keep in mind that directional biases and volatility conditions in market prices are typically driven by fundamentals. In the event you haven’t yet done your fundie homework on the British pound and the Swiss franc, then it’s time to examine out the economic calendar and stay updated on each day fundamental news!

GBP/CHF, which turned lower from its June highs, is currently trading just above the 1.1500 psychological handle and is correct around where the pair consolidated earlier this month.

Is GBP/CHF in for more losses? Or are we a pullback from the pair’s uptrend since mid-June?

GBP/CHF is sporting what looks like a Head and Shoulders pattern on the 4-hour time-frame with the pattern’s “neckline” lining up with the 1.1450 inflection point.

Consistent trading below the “neckline” may attract enough selling pressure to tug GBP/CHF below the 1.1400 mark and possibly gain enough momentum to revisit its 1.1250 June lows.

But when GBP/CHF sees bullish candlesticks after which momentum from its current consolidation, then the pair may head for its 1.1625 July highs if not latest multi-month highs.

Watch this consolidation closely, forex friends!