The GBP/CHF pair broke out to the upside during the session on Friday, clearing the top of the recent consolidation area that we have been stuck in. With that being the case, we have cleared the 1.5350 level, an area that has been rather resistive. We ended the day close to the 1.54 level, and I believe that we are heading to the 1.55 level in the short-term. That being said, I will buy short-term pullbacks in this marketplace as I believe the impulsive candle that we have seen for the Friday session should send this market higher. In fact, I would not be surprise at all if we broke out above the 1.55 level given enough time.
Remember, this pair tends to move with risk appetite, and as long as stock markets do well, this pair should as well too. Because of that, we will pay attention to market such as the S&P 500, the NASDAQ, the DAX, and the FTSE. If they continue to rise the way they have, we should see this market go much higher given enough time.
Remember, the Swiss franc has a specific purpose.
Member, the Swiss franc as a specific purpose when it comes to the Forex markets. After all, it is considered to be the worlds “safety currency”, and as a result when times are tough, people tend to buy it. With that being the case, as long as the stock markets do well I believe that we will continue to go much higher. I would not put too much faith in what the commodity markets are doing, because the commodity markets are failing due to a stronger than anticipated US dollar.
That being the case, I feel that the market is one that you can continue to buy on dips, and should continue to offer nice buying opportunities well into the 1.60 handle. Selling isn’t even a thought, and I believe that the 1.5250 level should offer a bit of a “floor” in this marketplace, and as a result I am bullish.
