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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Author : Azeez Mustapha

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Azeez Mustapha is an experienced author, trader, markets analyst, signals strategist, and funds-manager.