GBP/CHF Price Analysis — January 18

GBP/CHF Price Analysis — January 18

Despite widespread expectations that the Coronavirus crisis in the UK will be depleted soon, the British Pound against the Swiss Franc (GBP/CHF) continues to slide. As expected, the prevailing risk-off mood is benefiting the safe-haven CHF against other currencies.

Meanwhile, Britain has seen its coronavirus case-count maintain an upward trajectory since December, despite three national lockdowns. However, the region’s infection rate saw a significant slowdown last week, although it failed to provide any support for the GBP.

Nonetheless, there’re expectations that the condition of the Pound will improve soon. Many analysts predict that the GBP/CHF will recover gradually as the UK’s coronavirus vaccine programs take on new leaps.

The vaccination campaign in the UK is getting a lift, as citizens over 70 have been asked to come in for their shots. Britain has the highest percentage of vaccination in the Western world, as 6% of its total population have been vaccinated. Another bolstering factor for the GBP is the improving situation of COVID-19 infections in the region, showing that the lockdown measures have effectively tackled the highly-contagious variant.

Risk appetite is expected to get a bump in the coming days, and with it comes a bullish recovery in the GBP/CHF.

GBPCHF – Hourly Chart

GBP/CHF Value Forecast — January 18

GBP/CHF Major Bias: Bearish

Supply Levels: 1.2094, 1.2154, and 1.2205

Demand Levels: 1.2049, 1.2000, and 1.1943

The GBP/CHF saw its ascent last week cut short by the 1.2154 resistance, which triggered a selloff for the pair. However, the selloff got caught by the 1.2094 support (now resistance), where the GBP/CHF attempted a rebound. Needless to say, the attempt was futile and triggered a fresh selloff for the FX pair towards the 1.2049 support—where the price is hovering over at press time.

Considering the absence of risk-boosting factors in the meantime, the GBP/CHF will likely continue on its downwards journey towards the 1.2000 psychological support and lower.

Note: Learn2.Trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.

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GBP/CHF Price Analysis — January 11

GBP/CHF Price Analysis — January 11

GBP/CHF traded on a sideways momentum in the mid-European session, as the Coronavirus situation in the UK worsens and the prevailing risk sentiment undermines demand for the CHF. The ramping up of the vaccine campaign in Britain and additional stimulus measures could cause the Pound to slide even further.

Meanwhile, support for the GBP could come from the government, as the Chancellor of the Exchequer Rishi Sunak is scheduled to speak in parliament later today to talk about the current state of the economy and the prospect of more fiscal relief.

Meanwhile, analysts have pointed out the UK government’s efforts to tackle the virus by setting up special immunization centers and increasing vaccine distribution. Britain has approved the use of three vaccines, including those from Moderna, Pfizer/BioNTech, and homegrown AstraZeneca, across the region.

So far, the UK has administered vaccines to only 2% of the population, despite being one of the first to begin mass vaccination in the Western world. Although the UK has vaccinated more citizens compared to some European countries, there is still a need for the government to amp up vaccination considering the number of vaccines at hand and the mounting pressure on hospitals in the region.

In other news, the recent breakdown in the global risk sentiment could thwart demand for the safe-haven Swiss Franc and prevent a dip in the GBP/CHF.

GBPCHF – 4-Hour Chart

GBP/CHF Value Forecast — January 11

GBP/CHF Major Bias: Sideways

Supply Levels: 1.2100, 1.2154, and 1.2250

Demand Levels: 1.1914, 1.1800, and 1.1735

The GBP/CHF continued to trade on a sideways momentum into the new week, as the 1.1914 support stays unbroken. The pair has been trading on this momentum since the beginning of the year.

That said, we expect a steady climb to the 1.2100 in the coming days, where buyers will likely feel incentivized to take the price higher. Regardless, a fall beneath the 1.1914 support seems very unlikely at this point.

Note: Learn2.Trade is not a financial advisor. Do your research before investing your funds in any financial asset or presented product or event. We are not responsible for your investing results.

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