GBP/CHF: A break below 1.1870 to attract more downside momentum – TDS

Analysts at TD Securities think GBP/CHF could serve as a better proxy for a renewed proxy for Brexit risks — particularly for those who may already have exposure to the USD and/or JPY. 

Key quotes

“With sight deposits rising rapidly in recent weeks, we think the SNB has been busy trying to prevent CHF appreciation. We do not, however, think they are likely to prevent it.”

“With an eye on the end-April highs around 1.22, we think a break below 1.1870 is likely to attract additional downside momentum, particularly if risky assets begin to underperform in general.”