- During my daily analysis of currency pairs around the world, the British pound has caught my attention as it has pulled back against the Swiss franc.
- That being said, the market looks as if it is hanging around the 1.13 level, an area that of course is somewhat important on shorter term charts.
- The fact that we have found buyers in this area after initially breaking down below there suggest to me that there are still plenty of buyers underneath that will come into the picture and take advantage of “cheap British pounds.”
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Technical Analysis
The technical analysis for the GBP/CHF exchange pair is somewhat sideways as of late, but in the last couple of days we have seen a little bit more in the way of upward pressure. The 1.1375 level above there is a major short-term resistance barrier that if we can break above there, then the market could really start to take off. The 200 Day EMA underneath current trading of course will capture certain amount of attention, as will the 50 Day EMA. What’s interesting about both of these moving averages is that they are both flat, and we are most clearly in a consolidation area between the 1.11 level and the 1.1375 levels.
In general, this looks like a market that is trying to sort out where to go next, but it just doesn’t know yet what we are going to do as far as risk appetite is concerned.That being said, the Swiss franc has been on its back foot for a little while now, and I think that is something that we need to pay close attention to.
The market has seen a lot of trouble catching his breath and getting it’s momentum under control, but I do think that eventually we could very well break out to the upside due to the fact that the interest rate swap continues to favor this pair going higher, and I do think that a lot of traders are out there holding onto it as a result.
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