My picks: Stay Long GBP/CHF
Expertise: Fundamentals and Technicals
Average Time Frame of Trades: 2 - 10 Days
Following the long GBP/CHF recommendation from earlier in the month, the pair slipped lower this week and has yet to reach my target at 1.7489, the 2/10 high, or trigger my stop at the 100-Day SMA, and as the pair tests the 20-Day SMA for short-term support, I will continue to hold my position as the Swiss National Bank cuts its growth forecasts and pledges to stem the appreciation in the low-yielding currency. Nevertheless, as the U.K. 1Q GDP reading is expected to reinforce a weakening outlook for growth and inflation, fears of a deepening downturn could weigh on the exchange rate however, as investors continue to hold long-term expectations for higher interest rates in the U.K., the pound-franc may continue to trade within a broad range over the near-term.
