GBP/CHF: Sentiment Sends British Pound Into A Diving Mode| MENAFN.COM

Thursday, 29 September 2022 01:52 GMT

GBP/CHF: Sentiment Sends British Pound Into A Diving Mode


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The GBP/CHF is trading near lows it has not seen since 1974, yes, that is correct after the currency pair dove late yesterday.

The GBP/CHF is trading near values it has not seen in nearly 50 years. As of this writing the GBP/CHF is around a value of 1.08400 with fast conditions proving dynamic. Speculators within this 'forex cross' need to be careful as they wager on their perceptions, this because long term charts may prove difficult to interpret.

Historically the British Pound and Swiss Franc are two of the most sought after currencies. However, the past year of trading for the GBP has proven bearish and the GBP/CHF has witnessed a solid downturn. The question for traders is about the velocity of the bearish trend. In the first week of February this year, the GBP/CHF was trading near 1.25400. If a trader has been able to take a long term position via a selling order and ride the GBP/CHF lower, you are congratulated.Short Term Trading Circumstances and Risk Management of GBP/CHF

Traders of the GBP/CHF are likely experienced. However, as a friendly reminder the use of risk management should always be used. Yesterday's high of nearly 1.09825 began to come under pressure as the day progressed, and then upon the U.S Fed pronouncements more selling carnage began to be displayed. As today's trading began a value of about 1.08900 was in view. On the 20th of September the GBP/CHF was at nearly 1.10595 for a moment. The ride lower has been strong the past two days.

  • Historic lows in the GBP/CHF are being demonstrated and a long term bearish trend is on display, yesterday's nose dive added more drama to the selling of the currency pair.
  • Traders looking to take advantage of potential additional selling action need to remain realistic and use their risk management effectively.
Behavioral Sentiment is Significant and Nervousness Abounds in the GBP/CHF

Financial markets remain nervous and yesterday's rhetoric from the U.S central bank continues to show rising interest rates are likely globally as economic conditions remain challenging. The plight of the downturn in the GBP/CHF continues to test perceived support levels which have not seen the light of day for nearly half a century.

Short term traders should remain realistic regarding their ambitions and use take profits to capture targeted moves . Selling the GBP/CHF seems like the speculative choice from a logical viewpoint. While traders may ask how low can the GBP/CHF go, the currency pair continues to brush aside the question and has sustained its bearish trend. Looking for the 1.08300 to 1.08200 marks and lower may prove a worthwhile wager.GBP/CHF Short Term Outlook:

Current Resistance : 1.08576

Current Support: 1.08275

High Target: 1.09225

Low Target: 1.07891

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