GBP/CHF: A Long Position Worth Considering
Fundamental Analysis
Economic and Geopolitical Factors
Interest Rate Differentials: The Bank of England (BoE) is set to raise rates to 4.75% as inflation remains high, while the Swiss National Bank (SNB) has recently cut interest rates and may continue to loosen monetary policy .
This interest rate differential favors the British Pound over the Swiss Franc, supporting a long position.
Market Sentiment and Risk Appetite: The British Pound is considered a riskier asset compared to the Swiss Franc. As long as there is significant risk appetite in the market, the GBP/CHF pair could rally .
The majority of traders have been long on this market, indicating bullish sentiment .
Daily Payout Advantage: Buying the Pound against the Franc means that traders get paid at the end of the session every day, which adds up over the longer term .
This daily payout provides an additional incentive to hold a long position.
Long-Term Outlook
Potential for Higher Targets: Given enough time, the market is likely to aim for higher levels, potentially reaching the 1.20 level .
This long-term bullish outlook supports the rationale for targeting 1.1650 as an intermediate step.
Support and Resistance Levels
Key Resistance at 1.1650: The 1.1650 level is identified as a significant resistance level. Breaking above this level could open the door for further gains, making it a rational target for a long position .
This level has been tested multiple times, indicating its importance in the current market structure.
Support Levels and Entry Points: The pair has strong support near the 1.13 level, which has been a reliable floor for the price .
Additionally, the 1.15 level is a significant resistance barrier, and breaking above it could lead to a move towards 1.1650 .
These levels provide a clear roadmap for potential entry and exit points.
Economic and Geopolitical Factors
Interest Rate Differentials: The Bank of England (BoE) is set to raise rates to 4.75% as inflation remains high, while the Swiss National Bank (SNB) has recently cut interest rates and may continue to loosen monetary policy .
This interest rate differential favors the British Pound over the Swiss Franc, supporting a long position.
Market Sentiment and Risk Appetite: The British Pound is considered a riskier asset compared to the Swiss Franc. As long as there is significant risk appetite in the market, the GBP/CHF pair could rally .
The majority of traders have been long on this market, indicating bullish sentiment .
Daily Payout Advantage: Buying the Pound against the Franc means that traders get paid at the end of the session every day, which adds up over the longer term .
This daily payout provides an additional incentive to hold a long position.
Long-Term Outlook
Potential for Higher Targets: Given enough time, the market is likely to aim for higher levels, potentially reaching the 1.20 level .
This long-term bullish outlook supports the rationale for targeting 1.1650 as an intermediate step.
Support and Resistance Levels
Key Resistance at 1.1650: The 1.1650 level is identified as a significant resistance level. Breaking above this level could open the door for further gains, making it a rational target for a long position .
This level has been tested multiple times, indicating its importance in the current market structure.
Support Levels and Entry Points: The pair has strong support near the 1.13 level, which has been a reliable floor for the price .
Additionally, the 1.15 level is a significant resistance barrier, and breaking above it could lead to a move towards 1.1650 .
These levels provide a clear roadmap for potential entry and exit points.
Disclaimer
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