GBP/CHF This is a long-term downtrend with a narrowing range and weakening downtrend. In such cases, a trend reversal or consolidation is usually ahead, but will the pound really have enough incentive to cope with the Swiss franc, the demand for which is gradually growing against the backdrop of a recession in the global economy? - In this review, we are looking for answers to the question, as well as the right path for new deals.
Today was a key day for this currency pair, as a series of macroeconomic reports were published in the UK and it became known that business activity increased to 54.9 pips, which is a wonderful result against the rest of the world and indicates the growth of the economy in April. External factors were negative after weak reports from China, where a similar index of business activity was below 50 pips and did not meet the forecasts. However, in general, the pound had a very good week and we can see strengthening against most currencies.
As for Switzerland, the latest macroeconomic reports were simply terrible. Frank would be much stronger today without them, but he benefited from weak reports from China as demand for risky assets declined. At the same time, the economic situation in Switzerland looks worse than in China itself, especially if we recall the problems in the largest Swiss bank.
Next week will be more volatile for GBP/CHF. Expected publication of such important reports as the trade balance in China, the meeting of the Bank of England, which is likely to increase the rate, Britain's GDP in the 1st quarter and retail sales. Technical analysis tools are a little confusing. We believe that against the background of the upcoming news, the deals to Buy will be the most promising, since the pound will be supported by a change in the rate, and good reports from China will support demand for risky assets.
