GBP/CHF breaks out ahead of UK data
Fawad Razaqzada April 15, 2019 12:09 PM
Thanks to ongoing risk-on sentiment in the markets, the safe haven Swiss franc has fallen out of favour against several major currencies. Even the British pound is performing better than the Swissy, despite the delay in Brexit which has further increased near-term uncertainty.
Thanks to ongoing risk-on sentiment in the markets, the safe haven Swiss franc has fallen out of favour against several major currencies. Even the British pound is performing better than the Swissy, despite the delay in Brexit which has further increased near-term uncertainty. The GBP/CHF is therefore rising and will be interesting to see how it performs ahead of and after the upcoming UK data releases over the next couple of days. Tomorrow we will have the latest UK wages data followed by CPI a day later on Wednesday. The GBP could strengthen if these figures beat expectations.
From a technical point of view, the GBP/CHF could be about to stage at least a short-term rally. This pair has been putting in a few higher highs and higher lows since the start of the year, before the rally came to a halt in mid-March. Since then, it has been consolidating around its 50-day moving average. But it now looks like the consolidation phase could be over with price moving out of a bullish triangle pattern to the upside. With Friday’s high of 1.3130 broken, this level now needs to hold as support if the bulls are to remain in control this week. A possible rise towards the next potential resistance at 1.3240 would not come as surprise to us now.
Source: eSignal and FOREX.com.
Disclaimer: The information on this web site is not targeted at the general public of any particular country. It is not intended for distribution to residents in any country where such distribution or use would contravene any local law or regulatory requirement. The information and opinions in this report are for general information use only and are not intended as an offer or solicitation with respect to the purchase or sale of any currency or CFD contract. All opinions and information contained in this report are subject to change without notice. This report has been prepared without regard to the specific investment objectives, financial situation and needs of any particular recipient. Any references to historical price movements or levels is informational based on our analysis and we do not represent or warranty that any such movements or levels are likely to reoccur in the future. While the information contained herein was obtained from sources believed to be reliable, author does not guarantee its accuracy or completeness, nor does author assume any liability for any direct, indirect or consequential loss that may result from the reliance by any person upon any such information or opinions.
Futures, Options on Futures, Foreign Exchange and other leveraged products involves significant risk of loss and is not suitable for all investors. Losses can exceed your deposits. Increasing leverage increases risk. Spot Gold and Silver contracts are not subject to regulation under the U.S. Commodity Exchange Act. Contracts for Difference (CFDs) are not available for US residents. Before deciding to trade forex and commodity futures, you should carefully consider your financial objectives, level of experience and risk appetite. Any opinions, news, research, analyses, prices or other information contained herein is intended as general information about the subject matter covered and is provided with the understanding that we do not provide any investment, legal, or tax advice. You should consult with appropriate counsel or other advisors on all investment, legal, or tax matters. References to Forex.com or GAIN Capital refer to GAIN Capital Holdings Inc. and its subsidiaries. Please read Characteristics and Risks of Standardized Options.