GBP/CHF Breakout: Buyers Defend 1.0950 Level

The GBP/CHF currency pair has been seeing some interesting developments in recent trading sessions. According to Christopher Lewis, a technical analyst at DailyForex, the British pound initially fell against the Swiss franc on Monday, testing the 1.0950 level, an area that has been important in the past.

However, rather than continuing to fall, buyers have been jumping in and defending this level, indicating a potential uptrend. Lewis notes that 'buyers are willing to jump in and get long here' and sees some defense of the 1.0950 level as evidence of this.

Lewis attributes this interest in going long the GBP/CHF pair to several factors, including the carry trade dynamics and central bank policy. He points out that the British pound is relatively strong, while the Swiss franc has a central bank clinging to a 0% interest rate policy, making it unattractive.

Furthermore, Lewis suggests that if there were to be a sudden breakdown in the Swiss franc, it's likely that the Swiss National Bank would intervene, creating further upward momentum for the GBP/CHF pair. With the Bank of England possibly having to raise rates, this looks like a positive move for the British pound.

Lewis sees the breakout above 1.0950 as an important signal and is buying into this move, setting his stop-loss at 1.0890 and targeting 1.1050.