GBPCHF back to weekly lows after the SNB suprise?

21 ก.ย. 2023

As previously stated, the SNB's unexpected decision to keep interest rates unchanged dragged the Swiss franc lower across the board.

In the case of GBP/CHF, this meant a trip to the 1.1160 area following a bounce from the 1.1070 levels. That's nearly 100 pips in just over an hour!

Can the GBP/CHF pair maintain its gains?
In the 15-minute time frame, the pair is currently testing the R2 (1.1160) Pivot Point level, which coincidentally lines up with an area of interest from last week.

Keep an eye on the newswires in case the CHF's weakness does not gain traction in the coming trading sessions.

The BOE's decision will be available in a few hours. While many expect the Fed to raise interest rates by 25 basis points, some are concerned that it will harm the economy's growth trajectory.

Keep an eye out for GBP/CHF weakness or a strong rebound from its R2 levels. A decline could result in a retest of the 1.1120 area of interest, if not a drop to the pair's weekly lows.

Good luck and trading on this one!