GBP/CHF quotes continued to remain flat for a long time. The consolidation has continued for over 6 months and we could see a breakout in favor of the safe haven Swiss Franc in October. This comes amid growing demand for safe assets due to a possible war in the Middle East. The weakening of the pound also occurred as a result of the cooling of the labor market and in connection with the decision of the Bank of England to take a pause in raising the interest rate.
Volatility increases next week. The focus will be on the Bank of England meeting, which could affect the pound. Switzerland publishes a report on inflation in October, which is also important. After testing and moving the support line, a price correction is observed on the chart. Technical analysis indicators are multidirectional. We believe that Buy deals will be effective in the short term. The pound has every chance after an unstable October, but now the situation in the Middle East is also key, which could radically change the value of the franc in November. We recommend closely monitoring the news, setting S.L levels, with a readiness to open opposite deals in favor of the franc if the situation worsens.
