Fawad Razaqzada
TradingCandles.com
Thanks to ongoing risk-on sentiment in the markets, the safe haven Swiss franc has fallen out of favour against several major currencies. Even the British pound is performing better than the Swissy, despite the delay in Brexit which has further increased near-term uncertainty. The GBP/CHF is therefore rising and will be interesting to see how it performs ahead of and after the upcoming UK data releases over the next couple of days. Tomorrow we will have the latest UK wages data followed by CPI a day later on Wednesday. The GBP could strengthen if these figures beat expectations.
From a technical point of view, the GBP/CHF could be about to stage at least a short-term rally. This pair has been putting in a few higher highs and higher lows since the start of the year, before the rally came to a halt in mid-March. Since then, it has been consolidating around its 50-day moving average. But it now looks like the consolidation phase could be over with price moving out of a bullish triangle pattern to the upside. With Friday’s high of 1.3130 broken, this level now needs to hold as support if the bulls are to remain in control this week. A possible rise towards the next potential resistance at 1.3240 would not come as surprise to us now.
Trading leveraged products such as FX, CFDs and Spread Bets carry a high level of risk which means you could lose your capital and is therefore not suitable for all investors. All of this website’s contents and information provided by Fawad Razaqzada elsewhere, such as on telegram and other social channels, including news, opinions, market analyses, trade ideas, trade signals or other information are solely provided as general market commentary and do not constitute a recommendation or investment advice. Please ensure you fully understand the risks involved by reading our disclaimer, terms and policies.
Recommended Content
Editors’ Picks
EUR/USD climbs to 10-day highs above 1.0700
EUR/USD gained traction and rose to its highest level in over a week above 1.0700 in the American session on Tuesday. The renewed US Dollar weakness following the disappointing PMI data helps the pair stretch higher.
GBP/USD extends recovery beyond 1.2400 on broad USD weakness
GBP/USD gathered bullish momentum and extended its daily rebound toward 1.2450 in the second half of the day. The US Dollar came under heavy selling pressure after weaker-than-forecast PMI data and fueled the pair's rally.
Gold rebounds to $2,320 as US yields turn south
Gold reversed its direction and rose to the $2,320 area, erasing a large portion of its daily losses in the process. The benchmark 10-year US Treasury bond yield stays in the red below 4.6% following the weak US PMI data and supports XAU/USD.
Here’s why Ondo price hit new ATH amid bearish market outlook Premium
Ondo price shows no signs of slowing down after setting up an all-time high (ATH) at $1.05 on March 31. This development is likely to be followed by a correction and ATH but not necessarily in that order.
Germany’s economic come back
Germany is the sick man of Europe no more. Thanks to its service sector, it now appears that it will exit recession, and the economic future could be bright. The PMI data for April surprised on the upside for Germany, led by the service sector.