Ransquawk

The technical situation on GBP/CHF is interesting. For many years, the price has been moving in a broad downward trend, and the recent declines are, of course, a Brexit effect. However, the pound has been making up for some time now. On the chart we have a break from a well respected downward channel and breaking an important resistance. The reason for the strengthening of the pound is the drawing of a certain political plan, which distances the worst scenario of a chaotic departure from the community by the United Kingdom. The agreement is due to be voted on again on 12 March. If the parliament rejects it, the Prime Minister will immediately submit two proposals. One is to leave the community without an agreement and the other is to postpone leaving the community. It is precisely this second scenario that is beginning to be taken more and more seriously, also on the EU side, including by the German Chancellor. The strength of the pound was not even stopped by the strengthening of the Swiss currency due to the news of the worsening dispute on the border between India and Pakistan. The nearest resistance is the peak of 2018, although it is too distant to forecast such far-reaching growths, all the more so without much correction.

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