Trade of the day – GBPCHF

Summary:

  • UK lawmakers backed Brady and Spelman amendments
  • This may be tricky for the British Pound
  • In short term there is a possibility of sales pressure on the pound

Trade: GBPCHF long at market

Stop loss: 1,2970

Take profit: 1,3170

Justification:

We believe that Theresa May with Brady amendment will try to persuade EU authorities to change their mind about the Brexit agreement. On the other hand there were many voices from the EU that the Brexit agreement is not negotiable. This can lead to further uncertainty, despite the fact that the British parliament voted to reject leaving without a deal. We see a possibility that GBPCHF may retest a vicinity of recent high from the end of the last year.  

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Morning wrap
When performing transactions in the OTC Forex market, the possibility of making a profit is inextricably linked with the risk of losses.