GBP/CHF Forecast: A Market To Watch
If we can continue the upward momentum, the 50-day EMA will be targeted near the 1.14 level. And then beyond that, we would be looking at the 1.15 level. Remember, the British pound held against the Swiss franc does create positive swap at the end of the day, and I do think that makes a big difference over the longer term. Because of this, I don't really have any interest in trying to short this market anytime soon. After all, there is a lot of technical support underneath and of course the interest rate payment at the end of the day cannot be overstated as the interest rate differential between the United Kingdom and Switzerland is wide enough to deter those wanting to short this pair for a longer-term move.
Watch the 200-Day EMA
But if we did break down below the 200 day EMA, you would have to assume that this pair probably has further the drop. Of particular note will be the 1.11 level, an area that previously had been significant resistance it should now offer support. Nonetheless, the 200 day EMA does seem to be attracting buyers, which is very typical from a longer term standpoint.
(Click on image to enlarge)
Therefore, I do think that we are in the process of trying to stabilize this pair and perhaps send it higher. However, geopolitics, of course, could come into the picture and if people are starting to run towards safety again, that does mean the Swiss franc. So, it's possible that could throw a monkey wrench into things if you are bullish. All things being equal though, it does look like we are at least taking a step in the right direction here when it comes to this pair.
More By This Author:
BTC/USD Forecast: Shows Hesitation On The UpsideGold Forecast: Volatility Near Massive Support
GBP/USD Forecast: Testing Support At 1.27 Amid USD Strength
Disclaimer: Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only ...
more
Comments
