- The British pound has rallied quite nicely during the trading session against the Swiss franc in a bit of a risk on type of move.
- That being said, we have been in a range for a while, but I also would point out the fact that you get paid at the end of every day to hold this pair.
- And I think a lot of traders are looking at that and recognizing the potential value in that move.
So, with that being the situation, I think we will continue to see more of a buy on the dip type of attitude out there. The 1.14 level has been important multiple times as resistance, and now it looks like it's trying to offer support. Furthermore, the 50 day EMA sits below there and is rising. So, I think it comes into the picture to show a bit of a floor in this pair.
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Resistance Above
The 1.15 level above is an area that is significant resistance. And I think if we were to break above there, then we could go looking at much higher levels, perhaps the 1.1650 level. If we were to break down below the 1.1350 level, then you could see the British Pound drop to the 200-day EMA, where the 1.13 level sits. This is an area that I would be paying attention to quite often.
All things being equal, this is a market that I think short-term pullbacks continue to attract attention. And I do think ultimately, we will go higher. After all, the Swiss National Bank is extraordinarily dovish at the moment. And I think at this point, it's likely that we will continue to see a lot of volatility and choppiness, but ultimately, I think we continue to see more upward momentum than down.
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