GBP/CHF Carry Trade Momentum Builds Amid Support Levels

The British pound (GBP) has continued its rally against the Swiss franc (CHF), driven by the carry trade momentum, according to technical analyst Christopher Lewis.

Lewis, who specializes in chart-based analysis of major currency pairs, notes that the interest rate differential continues to favor the GBP, while the Swiss National Bank maintains ultra-loose zero interest rates.

The 1.10 level is being closely watched as a psychologically significant handle, but Lewis believes that it doesn't hold much significance when viewed on a longer-term chart.

He predicts that pullbacks will see support at 1.09, 1.0850, and the 50-day EMA, and recommends adding to positions every time they pull back.