After a long period of consolidation in 2020, we are likely to see a consolidation again in 2021, but at different levels. The period of the rise of the rates was very short, and now we can see the formation of a new flat trend in the range of 1.2590 - 1.3042 CHF. Fans of trading in the conditions of high volatility will have to choose other assets, but those who invest long-term would appreciate this currency pair's stable rates. The GBP has a good perspective against the safe CHF, given the optimism of investors and the demand for risky assets.
However, optimism is not the only reason for choosing deals in favor of the pound. This week's data on the British economy has restored confidence in this country. According to the latest reports, unemployment in the United Kingdom fell to 4.8% in April, inflation accelerated to 1.5%, business activity was the highest in the region in April at 66.1 pips, and the retail sales index rose by 9.2%, twice times higher than the forecasts. The situation in the neighboring EU is slightly worse. In particular, the EU economy contracted in the first quarter. Nevertheless, the growth of business activity and the intensification of inflationary processes suggest good prospects for the EU economy, where a significant part of the products from the UK are still exported.
At the moment, we can see that the rates are near the support line. In the future, we see the growth of quotations within the flat trend. Therefore, we should open the deals to buy today. Technical analysis tools are mainly neutral. The entry points can also be at the levels of 1.2590 and 1.3042. Reaching the latter one is considered more likely at the moment.
