Potential signal:This is one of my favorite currency pairs, as not only do you get the positive swap at you also have seen a major breakout above the 1.15 level. I am perfectly fine buying it here, putting a stop loss at the 1.1465 level, and aim for a take profit level of somewhere near the 1.1850 level.
This is especially true when you look at the idea that the interest rate differential most certainly helps. You hang on to this position, you get paid at the end of every day. You also have the overall attitude that the British pound has been stronger than many other currencies while the Swiss national bank has recently cut rates in a bit of a surprise move. 1.15 Will Continue to MatterI think at this point, the 1.15 level underneath will continue to be a major floor as it was a significant resistance barrier. The 50 day EMA is racing towards that area. So not only do we have a market memory there, but we also have the fact that the technical indicators are starting to race there as well. 
So with that being the case, I think you have to look at this through the prism of a market that is probably a little overdone but is trying to build up enough momentum to continue going higher and I think it does. I just don’t see how this changes anytime soon due to the fact that it is so strong, and everything does line up for the pound being much more attractive than the Swiss franc. So, I’m looking at dips as potential buying opportunities for GBP/CHF.More By This Author:USD/CAD Forecast: Looking for BuyersAUD/CHF Forecast: Cautious with Position SizePairs In Focus – WTI Crude Oil, Silver, DAX, GBP/CHF, EUR/GBP, USD/CAD, CAC, EUR/JPY
