British Pound Cross Pick 06.04.09

[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 GBP/CHF broke above the 200-Day this week for the first time since November 2007, but the sharp retracement following the move suggests that the pair will remain range-bound over the near-term as investors weigh the outlook for future policy. The lack of momentum to hold above the moving average is likely to drag the pair lower over the following week, and as a result, I have place a short GBP/CHF entry at 1.7195, the 20-Day SMA, and have set my target at 1.6751, the 100-Day SMA, with the stop at 1.7382, the 5/29 high.