The GBP/CHF pair fell hard during the session on Monday, slicing through the 50 day moving average yet again. However, with more significant is that we for all the way down to the 1.47 level. That in my opinion is getting close to the bottom of the 1.4750 supportive “zone”, and as a result it will be very interested to see how this pair behaves of the next couple of sessions. Remember, this pair tends to act along with risk appetite in general, and as a result I will be watching stock markets around the world for clues as to where that is going.
Certainly, we have seen a bit of a selloff in a lot of the major indices around the world, and that of course means that this pair could continue lower. However, I believe that the nonfarm payroll numbers coming on our Friday is essentially what the markets are starting to worry about. That’s conjecture of course, but we both had a couple of bad economic announcement come out United States recently, with the jobs market being the worst one of them all. The new one should help give us some type of clarity as to what the world’s largest economy is doing, which of course should give us some type of idea as to what the risk appetite around the world’s going to be.
British pound
The other side of the equation of course is what the British pound is doing in general. This is more a British pound question than a Swiss franc one most of the time, and I believe that’s still going to be the case. Going forward, I think that this market will more than likely find some support over the next couple of sessions, as breaking down below the cluster underneath the 1.47 level is probably somewhat unlikely. However, if we get some more bad news around the world, that could change rapidly. I think the 1.45 level is supportive as well, and I still believe that the easiest path will be higher, at least in the next couple of days.
