GBP/CHF Forecast: Measures Up Against Swiss Franc Over the Few days

• The GBP/CHF has been all over the place during the trading session on Wednesday, as we are hanging around the 1.10 level, and of course, waiting for a couple of major announcements coming out of both of those countries.
• The Thursday session features both the Bank of England and the Swiss National Bank announcements and interest rate decisions, so therefore I think we need to pay close attention to how the day ends.



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We are currently sitting at a major support region, and therefore think you got a situation where buyers could come into the market to pick things up, but we need to see the right combination of reaction a couple of central bank announcements in just a few short hours. It will come down more likely than not to the Bank of England, as the Swiss National Bank is likely to be loose with its monetary statement as per usual. If the English stay tight, that could turn this market right back around.

A Wild 24 Hours Just Waiting to Happen

The next 24 hours could be pretty wild for this currency pair, so I am deftly paying close attention to it. The 50-day EMA is near the 1.1050 level, and if we can break up other than unlikely to get long of this market. On the other hand, if we turn around and break down below the 1.09 level on a daily close, then I think the market probably goes looking to the 1.08 level after that. The 1.08 level underneath is an area that is massive support on longer-term charts, but if the market were to break down below there, we would likely see a complete collapse of the pound.

It’ll be interesting to see how this plays out because I think a lot of people are trying to run to the Swiss franc to deal with the upcoming recession and fears of an economic slowdown. Furthermore, there are also geopolitical concerns around the world that have people looking to the Swiss franc. On the other hand, if we get more of a “risk on attitude” out there, and the Swiss remain loose, then the Swiss franc could turn around and start being a funding currency again.

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