Despite improving the Swiss Economic Expectations number, the Swiss Franc extended its slide against the British Pound for the third day in a row. The index improved from November’s -10.8 to 9.5 in December. This was not enough to slow down the decline of the Swiss Franc against its peers.
There has been considerable volatility in the Swiss Franc’s pairings, with the GBP/CHF on course for the third day of gains. The market flight to safety on the back of geopolitical tensions between Russia and Ukraine have not helped the traditionally safe-haven currency. Investors have preferred to go across the Atlantic to the greenback in their search for safe-haven status, neglecting the Swissy, which has closer proximity to the potential hot zone.
The GBP/CHF is up 0.38% on the day.
The bullish action on the daily candle has violated the 1.24687 resistance. If the break is confirmed using time/price filters, the bulls would have clear skies to retest the 12 January highs at 1.25825. An additional climb brings 1.27129 into the picture.
On the other hand, rejection at 1.24687 allows for a corrective decline that tests 1.23650. The psychological support at 1.23000 (4/12 November 2021 and 4 January 2022 high) are additional downside targets available if the correction is extensive.
Follow Eno on Twitter.
This post was last modified on Jan 27, 2022, 15:28 GMT 15:28