UK and EU seek an agreement on Brexit terms
British Prime Minister Boris Johnson held a series of meetings with world leaders on the conditions for his country's exit from the European Union. Will the GBPCHF quotations grow?
Their upward movement means the strengthening of the British pound and the weakening of the Swiss franc. The UK exit from the EU should take place on October 31, 2019. If, until this time, the parties do not conclude an agreement on the settlement of mutual obligations, this could have a negative impact on the British economy and the pound. The other day, German Chancellor Angela Merkel announced the possibility of reaching an agreement with Britain until October 31 about Northern Ireland, which could remain a member of the EU Customs Union. The reaction of the foreign exchange market was very positive. The progress of negotiations on Brexit is able to increase pound quotes. Until the end of August, particularly important macroeconomic data in the UK is not expected. In turn, the Swiss franc is considered a safe haven currency. It is weakening in the event of a decrease in global risks amid a trade war between the United States and China. Such risks really decreased after the United States postponed the date of increasing duties on imports of Chinese goods from September 1 of this year to December 15. At the same time, the parties will continue trade negotiations.
On the daily timeframe GBPCHF: D1 exited the downtrend and is trying to adjust up.Various technical analysis indicators have generated signals to increase. Further growth of quotations is possible in the event of the conclusion of an agreement on Brexit and progress in trade negotiations between the US and China.
Technical Analysis Summary
Position Buy
Buy stop Above 1,207
Stop loss Below 1,167
British Prime Minister Boris Johnson held a series of meetings with world leaders on the conditions for his country's exit from the European Union. Will the GBPCHF quotations grow?
Their upward movement means the strengthening of the British pound and the weakening of the Swiss franc. The UK exit from the EU should take place on October 31, 2019. If, until this time, the parties do not conclude an agreement on the settlement of mutual obligations, this could have a negative impact on the British economy and the pound. The other day, German Chancellor Angela Merkel announced the possibility of reaching an agreement with Britain until October 31 about Northern Ireland, which could remain a member of the EU Customs Union. The reaction of the foreign exchange market was very positive. The progress of negotiations on Brexit is able to increase pound quotes. Until the end of August, particularly important macroeconomic data in the UK is not expected. In turn, the Swiss franc is considered a safe haven currency. It is weakening in the event of a decrease in global risks amid a trade war between the United States and China. Such risks really decreased after the United States postponed the date of increasing duties on imports of Chinese goods from September 1 of this year to December 15. At the same time, the parties will continue trade negotiations.
On the daily timeframe GBPCHF: D1 exited the downtrend and is trying to adjust up.Various technical analysis indicators have generated signals to increase. Further growth of quotations is possible in the event of the conclusion of an agreement on Brexit and progress in trade negotiations between the US and China.
- The Parabolic indicator shows a signal to increase.
- The Bolinger bands widened, indicating a volatility increase . Both Bollinger Lines Slope Up.
- The RSI indicator is above the mark of 50. It has formed a divergence to increase.
- The MACD indicator gives a bullish signal.
Technical Analysis Summary
Position Buy
Buy stop Above 1,207
Stop loss Below 1,167