The GBP/CHF surged higher throughout the week to push back above the 50.0% Fib, and the pair may make an attempt to retrace the sharp downturn from February however, as the U.K. preliminary GDP reading is expected to reinforce a weakening outlook for the region, fears of a prolonged recession could weigh on the exchange rate over the remainder of the week.
[B]Currency Pair: [/B]GBP/CHF
[B]Chart:[/B] 60 Min Charts
[B]Short-Term Bias:[/B] Flat
[B][U]Analysis[/U][/B]
The GBP/CHF surged higher throughout the week to push back above the 50.0% Fib, and the pair may make an attempt to retrace the sharp downturn from February however, as the U.K. preliminary GDP reading is expected to reinforce a weakening outlook for the region, fears of a prolonged recession could weigh on the exchange rate over the remainder of the week. After reaching a high of 1.8976 in November, the pound-franc slipped to a low of 1.5124 on 12/29 following the rise in risk aversion, and the lack of momentum to retrace the sell-off from December should continue to hold the pair within a broad range over the near-term however, as risk trends continue to dictate price action in the currency market, a rise in market sentiment could lead the pair to make a run for 1.7500-10 (61.8% Fib). Over the next few hours of trading, we may see the GBP/CHF continue to push higher to break above 1.7400 but nevertheless, as the RSI approaches overbought territory, gains are likely to be capped, and we may see the pair fall back to fill-in the gap from the 120 SMA. Be sure to check out other Technical Reports from DailyFX for additional information on the major currency pairs.
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