GBPCHF is trending lower inside a falling channel on its 4-hour time frame, bouncing off the resistance at 1.2700. Price could be aiming for the next support zones from here.

In particular, sellers could book profits at the bottom of the channel near the 1.2500 major psychological mark or the mid-channel area of interest at 1.2600. The 100 SMA is below the 200 SMA to confirm that the selloff is more likely to resume than to reverse, and the 200 SMA is holding as dynamic resistance.

Stochastic is already on its way down to confirm the presence of selling pressure, and the oscillator has plenty of room to slide before reaching the oversold region.

There were no major reports out of the UK recently, although traders continue to keep close tabs on the spread of the Delta variant in the country. If this prompts a more dovish stance from the central bank on account of weaker business and consumer spending, the pound could take more hits.

Meanwhile, the franc has been able to benefit from the pickup in risk aversion owing to these uncertainties in the global economy. More lockdowns are being announced in several countries, leading traders to buy up safe-haven assets once more.

There are no major reports due from the Swiss economy, leaving the franc to take cues from other catalysts. Markets appear to be enjoying some risk-on flows following the Fed decision to downplay inflation and refrain from reducing stimulus.

One possible market-mover might be the US advanced GDP release, which could show a faster pace of expansion in the US economy for the second quarter. A strong read could boost risk appetite, which might then be bearish for the franc, while a disappointing figure could increase the flight to safety.