• In my daily GBP/CHF analysis, it’s a lot more of the same.
• We have seen a short-term pullback, only to see buyers come back and press the issue to the upside.
• As I write this article, we are testing a major resistance barrier in the form of 1.15 CHF, which of course is a large, round, psychologically significant figure.

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If we can break above the 1.15 CHF level, it opens up the possibility of a move toward the 1.1650 level above, which was the latest swing high. If we do rally toward that area, then it’s probably only a matter of time before the pair truly takes off to the upside. That being said, if we pull back from here, then you could see the market looking toward the 1.1433 level, which has been a significant area in the past, but the 50-Day EMA sits just below there as well. In general, this is a market that has been recovering for quite some time, which is of course helped by the idea of the interest rate differential continuing to push this market higher, and I think that’s crucial to pay attention to.

United Kingdom Elections

Keep in mind the parliamentary elections are during the Thursday session, so it’ll be interesting to see how that plays out. If we don’t get some type of major shock, it’s possible that the market should just continue to go higher. However, if it ends up being a complete shock, that could send the British pound right back to the downside. It is in that environment that I’d be more than willing to step in and pick up a little bit of value, because you do get paid to hang on to the currency at the end of the day, and this is by far one of my favorite carry trade pairs at the moment.

The Swiss National Bank has already cut rates, so I think that is something to keep in mind. The SNB is the first major central bank to cut, but there have been a few others since then that have fallen right in line. The question now is what will the Bank of England do?

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