Over the last 30 days, the rates have been within a flat trend. The pound is little changed in price against the CHF, despite the pressure under which all safe-haven assets appeared amid optimism about the trade conflict between China and the US. It may look like the calm before the storm, but the trend range at the moment is 1.2660-1.2840, which is extremely narrow. Volatility is lower than ever. At the same time, the pound is not so stable against other currencies, and in particular, it is declining against the yen due to the strengthening of the latter as a safe asset.
In the absence of any macroeconomic reports, the pound remains influenced by political factors and the upcoming elections. Investors are expressing confidence in a Conservative victory, which will reduce the uncertainty regarding Brexit and allow the Conservatives to ratify the agreement with the EU. Therefore, every new poll is important, helping us predict the outcome of the election and consequences for the British economy. This situation will last until December 12, when the elections will be held. At the same time, the pound becomes more predictable because its value depends mainly only on the upcoming elections.
In this situation, we believe that In the medium term, the deals to BUY will be the most optimal, which is confirmed by the Stochastic oscillator. The entry points to the market are also the levels of 1.2660 and 1.2840 CHF. Achieving the latter is more likely.
