GBP/CHF – Short-term Cypher could offer a medium-term target
|Fundamental
With UK’s Hanckock stating that the NHS is on standby to start delivery of the vaccine from next month, we have seen a move to the upside in GBP this morning.
From a technical perspective, I believe this offers a good selling opportunity.
Traders buy risk currencies when stocks fall and sell risk currencies when stocks rise. The risk currencies of the USD, CHF and JPY are looking close to turning points.
With Brexit worries, I believe that the ‘buy GBP’ stance will be short-lived
Also, GBP in inversely correlated with the FTSE (UK100). I think the index has more upside to come.
FTSE
Technical
We have formed a bearish Crab formation between 1.2172-1.2176 on the one-hour chart
GBP/CHF one-hour
The main reason that I like this setup is that the three-hour chart highlights a potential target at 1.1845 (forming a bullish Bat pattern). The outlook is broken on a move above 1.2205 (swing high)
GBP/CHF 3-hour
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