GBPCHF
The rationale is as follows:
- The UK is in first position in its vaccine race out of Switzerland and other European countries. This gives it a chance of topping the major economy recovery rankings for 2021.
- The recent bout of GBP weakness against the USD at the start of April has been linked to a technical reversal of extended long positioning against funding currencies like JPY, CHF, & EUR rather than a more negative assessment of the UK economy.
- Euro is tipped lower against the USD and the Euro by Capital Economics and Goldman Sachs who give 'domestic vulnerabilities' and the Franc's low yielding return as reasons.
- The SNB will struggle to meet their 2% inflation target as the strong CHF has meant that Swiss imports are cheap.
Technical
One obvious area to take a GBPCHF long from is marked below
