Currency Pair: GBP/CHF
Chart: 60 Min Charts
Short-Term Bias: Bearish

Deteriorating fundamentals have dragged on the British pound over the last three months of trading, and the interest rate outlook for the U.K. continues to favor a bearish outlook for the GBPCHF. After reaching a high of 1.8706 in December, the pair slipped to a low of1.5124 on 12/29, but the British pound snapped back to pick up 900+pips against the Swiss franc this week. The sharp retracement pushed the RSI into oversold territory throughout the week, which suggests that the pair will continue to hold its bearish trend. Over the remainder of the week, I anticipate the pound-franc to face increased selling pressures as the Bank of England is widely expected to deliver a 50bp rate cut, and expect the pair to fill in the gap from the 120 SMA.