UK Prime Minister Boris Johnson will start his first full week and is expected to further prepare the country for a no-deal Brexit. He told Brussels that unless the Irish backstop is removed, there will be no deal acceptable to the UK. Forex traders are in a holding pattern as the British Pound hovers at strong support levels. The GBPCHF is ripe for a short-term spike and with light economic data ahead, can bulls force a short-covering rally? Today’s fundamental analysis will take a look at the upside potential in this currency pair.

Here are the key factors to keep in mind today for British Pound trades:

• UK Consumer Credit and Net Lending Securities on Dwellings: UK Net Consumer Credit for June is predicted at £0.9B and Net Lending Securities on Dwellings is predicted at £3.5B. Forex traders can compare this to UK Net Consumer Credit for May which was reported at £0.8B and to Net Lending Securities on Dwellings which was reported at £3.1B.
• UK Mortgage Approvals: UK Mortgage Approvals for June are predicted at 65.8K. Forex traders can compare this to UK Mortgage Approvals for May which were reported at 65.4K.
• UK M4 Money Supply: UK M4 Money Supply for June is predicted to increase by 0.2% monthly and by 2.4% annualized. Forex traders can compare this to UK M4 Money Supply for May which decreased by 0.1% monthly and which increased by 2.2% annualized. UK M4 Money Supply excluding IOFCs 3-Month Annualized for June is predicted to increase by 2.5% annualized. Forex traders can compare this to UK M4 Money Supply excluding IOFCs 3-Month Annualized for May which increased by 2.8% annualized.

The ongoing protests in Hong Kong and the escalation of violence has traders on edge which is pushing demand for safe haven assets. The Swiss Franc was leading this sector, but forex traders may opt to realize floating trading profits after a the strong rally. Economic data out of Switzerland remains solid, but a short term count-trend rally on the back of short-covering in the GBPCHF cannot be ruled out. Follow the PaxForex Daily Fundamental Analysis and take the profitable side of this currency pair!

Here is the key factor to keep in mind today for Swiss Franc trades:

• Swiss Total Sight Deposits and Swiss Domestic Sight Deposits: Swiss Total Sight Deposits for the week of July 26th are predicted at CHF577.9B and Swiss Domestic Sight Deposits are predicted at CHF477.1B. Forex traders can compare this to Swiss Total Sight Deposits for the week of July 19th which were reported at CHF579.5B and to Swiss Domestic Sight Deposits which were reported at CHF477.5B.

Should price action for the GBPCHF remain inside the or breakout above the 1.2245 to 1.2335 zone the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Long Position
• Entry Level: Long Position @ 1.2285
• Take Profit Zone: 1.2500 – 1.2540
• Stop Loss Level: 1.2225

Should price action for the GBPCHF breakdown below 1.2245 the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Short Position
• Entry Level: Short Position @ 1.2200
• Take Profit Zone: 1.1960 – 1.2140
• Stop Loss Level: 1.2245

Open your PaxForex Trading Account now and add this currency pair to your forex portfolio. Explore PaxForex today and learn how our traders earn more pips with every trade and why we remain a top choice forex broker for profitable traders!