FxWirePro: GBP/CHF target reached, fresh extension to 1.16

Anyone of our readers who has gone through our previous call,

“Sell Pound at 1.4 against Franc, targeting 1.24, with stop around 1.48, however, the trade may take some time to reach target.” Will be able to better relate, if you haven’t gone through the post here is the link, http://www.econotimes.com/FxWirePro-medium-term-outlook-Pound-may-drop-to-124-against-Franc-204959 .

As you can see, the target is almost reached. Today, the sterling made a low against the franc around 1.25. However, thanks to the referendum going against the pound we would like to extend the target to at least 1.16 against the franc. We fell the decline may even extend to 1.14 area.

With clouds of uncertainties surrounding the United Kingdom, it is very much likely that the pair will reach the stipulated target. The sterling will do most of the run whereas intervention by Swiss National Bank (SNB) unlikely to do much weakening of the franc.

Anyone interested in taking up fresh positions may use the 1.32-34 area as resistance.