The uptrend formed earlier in September continues. After the collapse in the rates, the pound was actively recovering against the franc due to the increased probability of a trade deal between the UK and the EU. However, experts are skeptical about the perspective of reaching a deal before the end of the year, and this periodically weakens the pound against other currencies. In addition, the pound is under pressure from the coronavirus pandemic, as there is a rapid increase in the incidence of the disease in the UK.
The Swiss franc did not gain an advantage against the pound, regardless of being a safe asset. Investors prefer to invest in the dollar as the safest and most profitable asset amid the pandemic. Switzerland's economic indicators also do not add any optimism. In particular, GDP data in June shows a record cut in the Swiss economy, and the investor confidence index fell from 45.6 to 26.2 pips. At the same time, the SNB keeps the rate negative and gives a negative forecast for the Swiss economy.
Based on this, the recovery of the pound was fair and should be continued. At the same time, Brexit will put pressure on the pound and will not allow it to recover to this year's highs until a deal with the EU is concluded. In this situation, we choose the deals to BUY that will be effective in the short term. In the long term, the deals on the trend will have an increased risk in case the Brexit negotiations fails and the widespread pandemic persists. The Stochastic oscillator is also committed to the deals to buy.
