The Swish National Bank reduced the volume of reserves
In this review, we suggest considering another currency pair with the British pound. Is there a possibility for the GBPCHF to rise?
Such dynamics indicate the strengthening of the British pound and the weakening of the Swiss franc. The British currency is rising before the parliamentary vote on the terms of Brexit, which is expected to be held on Tuesday, January 15. Let us recall that the UK’s withdrawal from the European Union is scheduled to take place on March 29, 2019. A referendum on this issue took place in summer of 2016, which became the reason for the significant weakening of the pound. On January 16, data on inflation for December, which may also affect the dynamics of the exchange rate will be published in the UK. A negative factor for the Swiss franc was the reduction of reserves of the Swish National Bank in December 2018 by 2.7% compared to November. As a result, reserves fell to the low since September 2017 and amounted to 729 billion Swiss francs. In addition, the Swiss National Bank reported a loss in 2018 in the amount of 15 billion Swiss francs.
On the daily timeframe, GBPCHF: D1 has moved from the downtrend to the neutral and is trying to correct up. A number of technical analysis indicators formed buy signals. The further price increase is possible in case of the transfer of Brexit and publication of positive macroeconomic indicators in the UK.
Summary of technical analysis
Position Buy
Buy stop Above 1.27
Stop loss Below 1.229
In this review, we suggest considering another currency pair with the British pound. Is there a possibility for the GBPCHF to rise?
Such dynamics indicate the strengthening of the British pound and the weakening of the Swiss franc. The British currency is rising before the parliamentary vote on the terms of Brexit, which is expected to be held on Tuesday, January 15. Let us recall that the UK’s withdrawal from the European Union is scheduled to take place on March 29, 2019. A referendum on this issue took place in summer of 2016, which became the reason for the significant weakening of the pound. On January 16, data on inflation for December, which may also affect the dynamics of the exchange rate will be published in the UK. A negative factor for the Swiss franc was the reduction of reserves of the Swish National Bank in December 2018 by 2.7% compared to November. As a result, reserves fell to the low since September 2017 and amounted to 729 billion Swiss francs. In addition, the Swiss National Bank reported a loss in 2018 in the amount of 15 billion Swiss francs.
On the daily timeframe, GBPCHF: D1 has moved from the downtrend to the neutral and is trying to correct up. A number of technical analysis indicators formed buy signals. The further price increase is possible in case of the transfer of Brexit and publication of positive macroeconomic indicators in the UK.
- The Parabolic indicator gives a bullish signal.
- The Bollinger bands have narrowed, which indicates low volatility. Both Bollinger bands are titled upward.
- The RSI indicator is above 50. It has formed a positive divergence.
- The MACD indicator gives a bullish signal.
Summary of technical analysis
Position Buy
Buy stop Above 1.27
Stop loss Below 1.229