In today’s comprehensive GBPCHF forecast, we will first examine the current economic conditions in Switzerland. Then, we will meticulously delve into the details of the technical analysis of the GBPCHF pair.
CHF Forex Reserves Hit Four-Year Low
Bloomberg—In October 2023, the Swiss National Bank (SNB) experienced a significant decrease in 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 reserve reduction indicates that the SNB has been actively intervening in the foreign exchange market. The central bank has been selling off currencies 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 briefly exited from the bearish channel, only to return shortly after, indicating a false breakout. The daily chart’s Relative Strength Index (RSI) indicator shows divergence, signaling a potential slowdown in upward momentum or even a trend reversal.
Given that the pair has re-entered the channel and is trading below the Ichimoku cloud, the GBPCHF forecast suggests that the downtrend will likely continue. The initial target is the 1.101 pivot point, followed by the S1 support level at 1.084.