- The British pound continues to grind higher against the Swiss Franc, but we did run into a little bit of resistance above.
- All things being equal, the market does look like it is trying to break out from a longer term standpoint, but we might be a little overextended in the short term.
- It would just end up being a buying opportunity on a dip that I think most traders would welcome.
The 1.15 level of course is an area that's been important more than once. I think that probably continues to be an area of interest one way or the other. After this breakout, I would anticipate that the British pound could go looking to the 1.20 level above, especially as the interest rate differential will continue to be a major driver of where we go next.
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The Swiss national bank has recently cut rates and the Bank of England doesn't seem to be getting close to it or at least not that close to it at this point. With this I think it makes a lot of sense that this pair continues to go higher so I certainly would not short this market. Granted, I do think that we probably get a short term pullback but that should end up being an opportunity that a lot of people will be looking towards. Underneath we have the 50 day EMA offering support as well and then of course the 1.13 level is a massive support level.
This is still one of my favorite pairs
In general, I think the GBP/CHF pair continues to be one of the better performers out there, as I have been short the Swiss franc and the Japanese yen against a multitude of currencies. And this one, of course, is one of them that I presently am long of. Ultimately, it would take a lot of negativity out there for me to envision some type of major selloff in this pair, so at this point I continue to favor the upside.
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