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.

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.

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