GBP/CHF - Break Higher Being Held in Check by Post-Brexit Trade Talks
GBP/CHF Price, News and Analysis:
- The technical set-up looks positive.
- Positive EU/UK trade outcome will fire-up the trade.
GBP/CHF – Primed and Ready to Go
The GBP/CHF daily chart looks increasingly positive after breaking higher on November 9 and the pair are now looking at returning to multi-week and multi-month highs in the short- to medium-term. The November 9 break saw all three moving averages conclusively taken out with the break of the 200-day simple moving average the most important in terms of sentiment. The pair traded below the longer-dated sma for months and this break suggests that GBP/CHF is now set to move higher, a sentiment reinforced by the 20-day sma moving higher through the 200-day sma also for the first time since March. The pair have also made a short-term series of higher lows and highs and a break above 1.2227 and 1.2259 will leave the mid-February high at 1.2820 the next area of resistance.
While the technical outlook looks promising, this move will be predicated on a positive outcome from the ongoing EU/UK trade talks. With the finishing line in sight, if the two sides can agree on post-Brexit trade terms - and this remains a big if - then Sterling will receive a boost while the risk-averse Swiss Franc will likely nudge lower with one less market negative to worry about.
GBP/CHF Daily Price Chart (December 2019 – November 18, 2020)
What is your view on GBP/CHF – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author via Twitter @nickcawley1.
DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.