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GBPCHF Forecast – November-7-2023

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In today’s comprehensive GBPCHF forecast, we will first scrutinize the current economic conditions in Switzerland. Following that, we will meticulously delve into the details of the technical analysis pertaining to the GBPCHF pair.

Swiss Forex Reserves Hit Four-Year Low

In October 2023, the Swiss National Bank (SNB) experienced a significant decrease in its foreign exchange reserves, reaching a low not seen since January 2017. The reserves dropped to CHF 657.76 billion, a decline from the revised figure of CHF 678.29 billion reported in the previous month.

This reduction in reserves indicates that the SNB has been actively intervening in the foreign exchange market. The central bank has been selling off currencies in an effort to support the Swiss franc and mitigate the effects of imported inflation. As of October, the inflation rate in Switzerland was recorded at 1.7%, aligning with both predictions and the rate reported in September.

GBPCHF Forecast: Testing the Key Resistance

In today’s trading session, the GBPCHF pair made a brief exit from the bearish channel, only to return shortly after, indicating a false breakout. The Relative Strength Index (RSI) indicator on the daily chart is showing divergence, signaling a potential slowdown in upward momentum or even a trend reversal.

GBPCHF Forecast - November-7-2023

GBPCHF Forecast – Daily Chart

Given that the pair has re-entered the channel and is trading below the Ichimoku cloud, the GBPCHF forecast suggests that the downtrend is likely to continue. The initial target is the 1.101 pivot point, followed by the S1 support level at 1.084.

  • 7 November 2023
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