British Pound Cross Pick 05-28.09

[B]My picks:[/B] Range Trade GBP/CHF
[B]Expertise:[/B] Fundamentals and Technicals
[B]Average Time Frame of Trades:[/B] 2 - 10 Days

The rally in the British pound failed to trigger the short entry I placed at the 1.6991 from the previous week, and the lack of momentum to break above 1.7500-10 (61.8% Fib of 1.5124-1.8976) is likely to hold the pair with range over the near-term as investors weigh the outlook for future policy. As the Bank of England is scheduled to hold its policy meeting next week, expectations for dovish commentary paired with speculation for an expansion in the central bank’s asset purchase program is likely to weigh on the exchange rate, and I will attempt to sell the GBP/CHF as the pair continues to hold within a broad range. As a result, I have placed a short entry at 1.7084, the 20-Day SMA, and have set my target at 1.6888, the 50-Day moving average, with the stop at 1.7173, the 5/18 high.