British Pound Cross Pick 07.02.09

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

Following up with the long GBP/CHF recommendation from the previous week, the spike downturn during the overnight session opened the long entry I placed at 1.7652, but the pair pushed back to hold above the 20-Day moving average following the comments from the Swiss National Bank. As SNB board member Thomas Jordan pledges to stem the appreciation in the Swiss franc, and attempts to put a floor on the exchange rate, the pound-franc is likely to trend higher over the near-term, and may continue to retrace the sell-off from last October. As the GBP/CHF turns higher, I have tightened the stop to 1.7753, and have placed another long-entry at 1.7819, the 6/25 low, and set the target to 1.8117, the yearly high, with the stop at 1.7753, the 20-Day SMA.