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GBP/CHF climbs after July breakout above 1.0700
Sterling strength is tied to a more hawkish Bank of England outlook, while the Swiss National Bank keeps its policy rate at zero and warns it may intervene to curb excessive franc gains.
GBP/CHF has moved higher after a decisive breakout in early July following nearly three months of consolidation, with price holding above 1.0700 and shifting into an uptrend. Action Forex reports that the move has been supported by fading UK political uncertainty and market repricing around the next UK government, including commentary that Shabana Mahmood could be frontrunner for chancellor.
On the policy side, the Bank of England is still viewed as firmly in tightening mode, and markets are fully pricing a rate hike by year end. The piece also links renewed Middle East tensions to higher oil prices, which it says is stoking fresh inflation risks that help support GBP.
By contrast, the Swiss National Bank maintains its policy rate at zero, with inflation near zero and subdued growth. Action Forex also notes that the SNB has flagged a renewed willingness to intervene against excessive franc appreciation, while the franc continues to attract safe haven demand tied to the same conflict boosting the GBP outlook.
Technically, the article says price is forming higher highs and higher lows within an ascending parallel channel, with the 100-period EMA below price indicating buyers remain in control. However, it adds that RSI is showing bearish divergence, and that any sellers would likely need a confirmed breakdown below the ascending trendline and the 100-period EMA to challenge the 1.0700 level again.