Chart of The Day GBPCHF
GBPCHF Potential Reversal Zone & Probable Price Path
GBP: EU spokesperson says UK and EU have reached an agreement in principle on Protocol on Ireland / Northern Ireland. The UK will remove clauses 44, 45 and 47 of the Internal Market Bill and will not introduce any similar provisions in the Taxation Bill. UK Cabinet Minister Gove says he is delighted to announce an agreement in principle on all issues in the UK-EU Withdrawal Agreement Joint Committee. Note, this means that an agreement has been achieved on the Northern Ireland/Ireland protocol. However, as noted by BBC's Kuenssberg this does not mean that all issues on the trade deal have disappeared but it shows an improvement in the mood between both sides. Additionally, the UK government will remove clauses 44, 45 and 47 of the Internal Market Bill and will not introduce any similar provisions in the Taxation Bill.
CHF: The SNB remains uncomfortable with Franc appreciation and continues to remind the market it will need to be careful about any attempts at trying to force an appreciation in the currency. But the SNB will also need to be careful right now, as its strategy to weaken the Franc is facing headwinds from a less certain global outlook. Any signs of renewed risk liquidation will likely invite a very large wave of demand for the Franc that will put the SNB in the more challenging position of needing to back up its talk with action, that ultimately, may not prove to be as effective as it once was, given where we're at in the monetary policy cycle.
From a technical and trading perspective, GBPCHF is sitting on pivotal trendline support at 1.18 this level also represents the descending trendline from the December 2019 peak. If price is supported here then bullish exposure should rewarded on a move back through yesterday's highs at 1.1980 opening a move to retest the horizontal resistance zone at 1.22, the next test of this level would represent a sixth test of offers here which would likely be eroded on this next test , opening a move to test an equality objective at 1.2725 versus the September swing low. A close through 1.18 would negate the bullish thesis opening another test of bids at 1.16
Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.
High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 72% and 75% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Disclaimer: The material provided is for information purposes only and should not be considered as investment advice. The views, information, or opinions expressed in the text belong solely to the author, and not to the author’s employer, organization, committee or other group or individual or company.
Past performance is not indicative of future results.
High Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75% and 75% of retail investor accounts lose money when trading CFDs with Tickmill UK Ltd and Tickmill Europe Ltd respectively. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Futures and Options: Trading futures and options on margin carries a high degree of risk and may result in losses exceeding your initial investment. These products are not suitable for all investors. Ensure you fully understand the risks and take appropriate care to manage your risk.
Patrick has been involved in the financial markets for well over a decade as a self-educated professional trader and money manager. Flitting between the roles of market commentator, analyst and mentor, Patrick has improved the technical skills and psychological stance of literally hundreds of traders – coaching them to become savvy market operators!