GBP/CHF quotes continue with high probability of the trend reversal. The upward movement has been observed for a whole month, and if the pound successfully resists the strong USD, then there will be no problem to cope with Swiss franc. A new wave of the pandemic this year may hinder the recovery of the pound, but for now there is still confidence that the pound and the strong UK economy withstand this pressure.
This week, the pound steals the spotlight, and not in vain, because the macroeconomic reports published this week exceeded all forecasts. First of all, we should mention the decrease in unemployment to 4.1%, and the consumer price index rising to 4.2% in December. Inflation turned out to be the highest since 1992, but this motivates the Bank of England to raise its rate. So, such indicators strengthened the value of the pound. In fact, taking into account all the latest data, including GDP and the trade balance, we state a complete recovery of the British economy to the level it was before the pandemic in 2019, and by many indicators, there is further growth.
There is still a certain demand for safe assets, but we still prefer the pound today and open deals to Buy. The value of the franc remains dependent solely on the influence of external factors, but this is not enough to fight the pound. Most technical analysis tools also consider buying the Pound as the most correct decision today.
