Johanes
Long

JLS Trade: GBPCHF Target Zone Trading 1.2400-1.3800

FX:GBPCHF   British Pound / Swiss Franc
Based on time series interest rate differential-based currency band method and the measured average weighted rates to current GBPUSD and USDCHF target zones, the estimated exchange rate target zone for GBPCHF is 1700 PIPs of which 1.2400 as actual lower ceiling and the 1.3800 as the estimated upper ceiling. The current monetary price movement to upward by their interest rate differential-based monetary price trend.

At 1.3100, the pairs was compressed (pullback) and presently already resumed to upward by her interest rate differential monetary price trend. The current interest rate differential monetary price trend also carried by CHF carry traders to look for two source of profits from, the GBP appreciation by the CHF plus interest rate differential fees.

Trading strategies:

Long/buy at lowest rate (by technical method or by currency band method)
Average monthly volatility , 300 PIPs
Stop loss 300 PIPs
Target, 1.3800 for estimated 500 PIPs, estimate by May 2019
Risk Category: Low

Risk management: stop loss position managed overtime to risk-free trading position as permitted by the market price movement to upward by maintaining 300 PIPs below the current rate. At such, should the current rate 300 PIPs above the entry rate then the trading position manageable to risk free.

Or,

Long/buy from interdays low (by technical method or by currency band method)
Average interdays volatility , 150 PIPs
Stop loss 150 PIPs below interdays low
Target, 150 PIPs (interdays high)
Risk Category: Medium

Risk management: stop loss position managed overtime to risk-free trading position as permitted by the market price movement to upward by maintaining 150 PIPs below the current rate. At such, should the current rate 150 PIPs above the entry rate then the trading position manageable to risk free.

Or,

Long/buy from daily low (by technical method or currency band method)
Average daily low/high, 100 PIPs
Stop loss 100 PIPs below daily low
Target, 100 PIPs (daily high)
Risk Category: High

Risk management: stop loss position managed overtime to risk-free trading position as permitted by the market price movement to upward by maintaining 100 PIPs below the current rate. At such, should the current rate 100 PIPs above the entry rate then the trading position manageable to risk free.

Note:

JLS Trade means I also trade this pair, but not prime target.

Your comments and opinion are welcomed. This analysis is integrating technical method to currency band method for easier to follow. This analysis will not be changed or altered unless there is major changes on the monetary policy made by the BOE, SNB and the Fed during the upward movement of the monetary price trend.

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