GBP/CHF Price Analysis — February 1

GBP/CHF resumed its bullish momentum in the early European session, as the GBP picks up demand and market mood soars. Meanwhile, the pound is likely to gain more traction as the European Union holds off from putting the UK on the export restriction list.

President of the EU Ursula Von Der Leyen’s recent comment about an additional 900,000 Covid vaccines for the bloc appears to be the trigger for Brussels’ decision to keep the UK off its export restriction list.

Meanwhile, the market risk got bolstered by the UK’s 600,000 vaccinations a day program and the easing number of COVID-19 infections in Britain. Meanwhile, the market mood got an additional boost following the optimism surrounding British Trade Secretary Liz Truss’s ability to secure a decent trade deal from the US.

Furthermore, the Financial Times recently mentioned that UK Prime Minister Boris Johnson and Chancellor Rishi Sunak are preparing for an anticipated recovery, with a “pre-Budget recovery plan,” which pumped market risk mood further.

However, chatter on social media about Silver’s sudden rally and possible limitations on market and the Irish Taoiseach’s move to dampen the EU-Uk vaccine row could frustrate market risk mood. Also, the civil unrest across Brussels, Budapest, and Vienna could limit the profit potential of the GBP a bit.

GBP/CHF Value Forecast — February 1

GBP/CHF Major Bias: Bullish

Supply Levels: 1.2300, 1.2345, and 1.2400

Demand Levels: 1.2250, 1.2205, and 1.2154

The GBP/CHF resumed its bullish momentum from last week, as the pair finally snapped the one-year-strong 1.2250 resistance (now support) a few hours ago. This rally could continue to the 1.2400 psychological level in the coming days if the market maintains its current risk mood.

That said, we expect a mild correction to the 1.2250 support level in the coming hours, followed by a bullish continuation in the coming days.

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