(MENAFN- Daily Forex) Potential signal:

• I am buying this pair right now, with a stop loss at the 1.06 level, for a longer-term“buy and hold” position.
• I have no target yet, but can conceive the idea of 1.10 being targeted.

The British Pound advanced against the Swiss franc on Tuesday as the SNB continued signaling resistance to franc strength. Price action above 1.0650 and the 50-day EMA support a bullish tone, though the broader downtrend remains influential.

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The British Pound has rallied quite nicely against the Swiss franc during trading on Tuesday, as we continue to see the Swiss franc lose ground overall. That's not a huge surprise because the Swiss National Bank is pretty much telling the markets flat out that they are not going to tolerate a strengthening Swiss franc.

With the British Pound getting a bit of a reprieve during the last couple of sessions anyway, it makes sense that the Swiss franc would be one of the places that finds most of its gains. The market is above the crucial 1.0650 level. And now it looks like it's going to at least try to get to the 1.07 level. We have broken above the 50-day EMA, and that, of course, is a bullish sign as well, but ultimately, I think you have to look at this as a market that will remain swimming upstream.

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And although it looks like we are trying to form some type of longer-term bottom here, the reality is that we had been in a very serious downtrend for a while, and that's something that's going to be hard to shake off. Breaking above the 1.07 level, of course, is a very bullish sign.

EURUSD Chart by TradingView

If we break down below the 1.06 level, then we may continue to see a little bit of negativity, perhaps reaching towards 1.05, where I think, the Swiss National Bank might start to take notice. Keep in mind, this isn't the pair that the Swiss pay the most attention to. That would be the Euro against the Swiss franc, but it all ties in together.

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