Analysis of the pound-franc pair

GBP / CHF at the basic level

The British pound rose against most major currencies despite the fact that the Bank of England cut interest rates as expected on Thursday, but after a vote of only 5 votes to 4 in favor of keeping interest rates fixed, showing a lack of conviction in its direction towards easing monetary policy.

The Bank of England also renewed its guidance of gradual cuts.

But analysts expect the inability of the central bank to reduce interest rates due to the constancy of inflation, as the British economy is leaning towards stagflation, which is not positive for investor sentiment.

On the other side of Switzerland, soira received a painful blow after Trump imposed customs duties on bullion weighing a kilogram or 100 ounces, as Switzerland is the largest gold refining center in the world, and its exports of gold to the United States topped 61.5 billion dollars during the twelve months ended last June, with the application of new customs duties by 39%, this quantity will be subject to additional duties estimated at 24 billion dollars.

Although these data are negative for the Swiss economy and may cause a decline in the value of the franc, now the franc is a safe haven currency that can benefit from such decisions.

GBP / CHF at the technical level

Today, the pair is trying to break through the levels of the main downtrend on the daily frame, where breaking through the levels of 1.0870/80 and closing the candle on the day above is a good opportunity to buy the pair with the aim of completing the pair for the harmonic Gartley pattern, which targets the levels of 1.1300 and around as the final goal, and before it initial targets near the levels of 1.1040 and then 1.1160.

This scenario fails if the trend breaks again and closes below with a candle for at least a day.