FxWirePro Short-term Outlook: Sell pound against franc targeting 1.275 area

The pound has been declining steadily against the franc, as the economy weakens in the UK and Switzerland continue to experience safe haven flows over political crisis in the European Union. After reaching a peak around 1.386 against the franc in April the pound has declined to 1.305 area as of today. That is an 800 pips move in two months. However, we suspect that the decline is not over and there is a potential to make further profit from short positions. The UK economy has slowed to 1.2 percent y/y in the first quarter.

Trade idea:

Sell GBP/CHF at the current rate of 1.305 with a target of 1.275 and the stop loss around 1.326 area. The short side target is likely to extend further.