- During my daily analysis of the currency market, the GBP/CHF pair is very interesting in my opinion, due to the fact that we have seen a bounce from an area that was also supported.
- All things being equal, this is a market that I really like, because the difference in interest rates is quite large, and therefore you can really start to make a profit in the long term if you simply charge a swap.
The shape of the candlesticks for Friday’s trading session is negative, but there is some hope, as we bounced back from the 1.1170 level, which is an area that is somewhat supported by model times. The market turning and bouncing the way it has so far suggests that we might try to stay in the same trading range we were in before. Furthermore, technical analysis adds a few more factors that should be paid attention to in this market as well.
Technical Analysis
The technical analysis for this market is essentially sideways as the market moves back and forth between the 1.11 level below and the 1.1350 level above. We’re basically in the middle of that range, so that shows you how neutral we are. The 50-day EMA is also very sideways, as is the 200-day EMA. That being the case, it just goes to show that the long-term view is still largely poor. However, what if you simply held this GBP/CHF pair and collected the swap over several weeks, if not months? That’s exactly what running a store is all about, and I suspect that’s what many professionals would do.
If we can turn a break above the 1.14 level, that would obviously be a very bullish sign, but at this point, I think it’s clear that buyers continue to come back into this market every time we go down, I think that’s going to be the way we go forward, and I think we will eventually break out, mainly because of the weakness of the Swiss franc.
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