• The British pound did initially rally against the Swiss franc during trading here on Friday as we have reached the 50 day EMA.
• This is an area that obviously will be important as most traders will pay close attention to the 50 day EMA.
• But it's also worth noting that right around the 1.0875 level we had seen resistance previously in the beginning of July.

So, I think there might be a little bit of a pullback here. That pullback for me ends up being a nice buying opportunity as long as we can stay above the 1.08 level, which takes some work, but let's face it with the Swiss facing 39 % tariffs at the hands of the Americans, people are starting to bail out of Switzerland. And I think that's part of what's going on here.
 

Double Bottom?

Furthermore, you can see that we are in the midst of making a double bottom based off the 1.07 level, an area that goes all the way back to 2022 as support. So, I think it all ties together quite nicely for a potential bottoming pattern. Bottoming patterns to change trends, not necessarily the cleanest or easiest thing to deal with, so be aware of that.
 

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But I think we have a scenario where if we can stay above this 1.08 level, I'll be buying some bounce, aiming for the 1.09 and then eventually the 1.10 level. Longer term, who knows where we can go. But right now, it certainly looks like we are trying to fight back and push this thing back into a positive trend.
 

The interest rate differential continues to favor the British pound. I don't see that changing anytime, possibly in my lifetime. So, with that, you get paid to wait, being paid to wait overtime will add up.

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