British pound to continue going higher against Swiss franc
The British pound rallied significantly during the trading session on Friday, testing the top of a shooting star from the Thursday session. While this would typically be a very bearish sign, the reality is that the Thursday session also featured Thanksgiving, which of course took a lot of the volume out of the market. Because of this, you can’t read too much into the candlestick. Ultimately, this market looks as if it is going to go looking towards the 1.30 level, and then eventually the 1.34 level after that which is the top of the overall market.
Looking at this chart, it seems as if the 1.27 level will offer significant support, just as well as the 50 day EMA breaking above the 200 day EMA is very bullish. With that in mind, keep in the back of your head that pullbacks will offer support, and of course we have a lot of concerns when it comes to the British elections. The latest election polls suggest that the Tories are going to take over, and that of course is a very bullish sign because it means that Boris Johnson might be able to finally get the Brexit deal done. With that, it brings a bit of certainty into the marketplace. Beyond that, we also have a “risk on/risk off attitude to this pair, and as risk picks up in the form of the US/China trade negotiations, that also dries money away from the Swiss franc. At this point, it looks as if the resistance is being chewed away at, and that it is probably only a matter of time before we continue much higher. Safety currencies are getting hammer, not just the Swiss franc but also the Japanese yen of the last couple of days, and that is a trend that should continue barring some type of negative headline.
Looking at this chart, it seems as if the 1.27 level will offer significant support, just as well as the 50 day EMA breaking above the 200 day EMA is very bullish. With that in mind, keep in the back of your head that pullbacks will offer support, and of course we have a lot of concerns when it comes to the British elections. The latest election polls suggest that the Tories are going to take over, and that of course is a very bullish sign because it means that Boris Johnson might be able to finally get the Brexit deal done. With that, it brings a bit of certainty into the marketplace. Beyond that, we also have a “risk on/risk off attitude to this pair, and as risk picks up in the form of the US/China trade negotiations, that also dries money away from the Swiss franc. At this point, it looks as if the resistance is being chewed away at, and that it is probably only a matter of time before we continue much higher. Safety currencies are getting hammer, not just the Swiss franc but also the Japanese yen of the last couple of days, and that is a trend that should continue barring some type of negative headline.