GBPCHF - Preferred trade is to sell into rallies

FX:GBPCHF   British Pound / Swiss Franc
Trade Idea

Broken out of the channel formation to the upside.
Bespoke resistance is located at 1.2532.
There is scope for mild buying at the open but gains should be limited.
A higher correction is expected.
Although we remain bearish overall, a correction is possible without impacting the trend lower.
Preferred trade is to sell into rallies.

We look to Sell at 1.2530
Stop: 1.2570
Target 1: 1.2360
Target 2: 1.2305

Trade ideas & daily market report July 9th 2019

Market highlights

Reduced expectations of aggressive Fed easing continued to support the US currency during Monday, although ranges were narrow.

Equity markets lost ground as expectations of aggressive Fed rate cuts declined further.

Demand for the yen and Swiss franc weakened slightly as US bond yields edged higher with the Euro also unable to make headway.

Gold prices also declined as bond yields increased and the dollar maintained a firm tone.

Oil prices gained some support from Iran tensions, but failed to hold gains.

Commodity currencies were unable to make headway amid a solid US currency tone with Sterling also losing ground.

Bitcoin pushed above $12,000 which helped trigger further buying.