The GBP/CHF pair fell during the majority of the session on Thursday, but as you can see bounced enough to form a hammer which suggests to me that the 1.48 level is starting to give way to the buyers. That being the case, I think that we are starting to see the breakout of an ascending triangle that could lead this a couple of hundred pips higher. The most logical place to look for resistance would be the 1.50 level as it is a large round psychological barrier.
That being the case, another thing you have to pay attention to is the fact that the British pound itself has been so strong lately, so would not be surprising at all to see the Pound continue to gain in this pair, as it should gain against most other currencies. After all, nobody really wants to hold the Swiss franc. If they don't have to, as it is a safe haven currency.
Grind higher.
This pair tends to grind higher from time to time, and then suddenly breakout impulsively. I don't think we’re going to see an impulsive move your, and as a result I think we will just simply grind for the next 200 pips. Because of this, you will have to be somewhat resilient to hang onto the trade, and show some fortitude. I believe that pullbacks will bring in more buyers into the marketplace, especially considering how well the British pound is doing in general, and the fact that it has broken out to the upside against the US dollar. That typically will move the British pound in sympathy across the board, and as a result there's no reason to think that this pair will struggle to go higher for any great length of time.
Today might be a little bit odd though, simply because it is Friday and the fact that the Americans won't be around. Even though the holiday was Thursday, it's very rare that Americans come back to work the next day. That being the case, there will be a serious case of lopsided liquidity, and as a result, you could perhaps wait until Monday to make the first move.
