My picks: Stay Long GBP/CHF
Expertise: Fundamentals and Technicals
Average Time Frame of Trades: 2 - 10 Days
The GBP/CHF pushed higher this week after finding short-term support at the 20-Day SMA, and I expect the pair to retrace the sell-off from the previous week as investors continue to hold long-term expectations for higher interest rates in the U.K. As a result, I have decided to maintain my long GBP/CHF trade from earlier this month, and will keep my target at 1.7489, the 2/10 high, with the stop at the 100-Day SMA as market sentiment improves. Moreover, as the Swiss National Bank pledges to stem the appreciation in the low-yielding currency, increased speculation for an intervention is likely to drag on the Swiss franc over the near-term, and we may see the pair continue to push higher over the near-term to retrace the downturn from December.
