Risk aversion sent risky assets such as the pound sterling lower this week, while safe havens such as the Swiss franc gained points.
Could the Tide Turn for GBP/CHF After UK Retail Sales Release?
I don’t know if you have read Bebo Retail Sales Event Guide for the month of June in the UKbut we could see better-than-expected retail activity for the third consecutive month tomorrow.
GBP/CHF for 15 minutes Planned by TV
Strong retail numbers will give the Bank of England (BOE) more room to raise interest rates if needed. The increasing possibility of a rate hike from the Bank of England could support the GBP against its major peers such as the Swiss Franc.
As you can see, the GBP/CHF pair is already finding buyers near this week’s lows. Coincidentally, the move to the low of 1.1070 is also a halving Daily fluctuations of the average GBP / CHF.
GBP/CHF may turn higher from 1.1070 support area and may complete breakout of double bottom pattern if UK retail data surprises upwards.
I look at the ‘neckline’ of 1.1100 as an initial profit target. After all, it is not too far from the 1.1120 pivot point line and the 100 SMA on the chart.
Additional long positions may depend on overall risk sentiment. The US prints Initial Jobless Claims and Philly Fed manufacturing numbers later today.
If today’s market themes encourage risk taking, I would also consider playing a possible bullish breakout and adding long positions above the pivot point line.
what do you think? Will the GBP/CHF see a bullish reversal before the end of the week?
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