GBP/CHF - 71

recent gains in GBP are evident all over the forex market, but shortly after the European GBP counted small pullback after construction PMI came much lower than expected (54.1 vs. 58.2 expected). Shortly after the best that GBP bulls could do is to put it back on the mark from where it retreated from, across the board. It seems like that much of the GBP good news has already been priced inn, so not even the considerably lower than expected Construction PMI can bring it down. On GBP/CHF it is evident that buyers did not want to push it higher than 200 SMA, although some of them tried, but rally stalled, and market participants are looking for new inspiration. Plenty of data for the GBP is underway, with major news coming out on Thursday, MPC rate statement. Nobody is really expecting that rate will change, but everybody is wanting to hear the statement. Trade is assuming that many of the good news has already been priced inn, and that some will start exiting GBP longs ahead of policy decision. In case of risk aversion and falling equities, CHF will get it's fair share and that will go in favor of our trade. Stops are placed at 1.6608 and target is set at 1.6408, but in case of stronger pulback and more negative news for the GBP, target 2 will be placed at 1.6328.
As it was mentioned in the beginning, GBP is showing strength across the FX market, so move to the upside should not be a surprise.