GBPCHF Analysis

GBPCHF is flirting with 1.21 once again, we've seen multiple rejections of this area so once again we are looking for sells for a low risk high reward setup. Fundamentally, we could see a second wave of covid due to the current protests. A lot of countries are also claiming lockdown measures are being lifted too soon. These rhetorics are causing a lot of uncertainty and this is yet to be reflected short term in currency markets as the last week of trading the mood has been very 'risk-on'. The markets are being very single minded and focusing on happier days ahead in a post lockdown world, ignoring the current crisis'. Longer term we are looking to buy the Sterling against safe haven assets but we believe we could see a dip lower before executing these positions, which can also be reflected from the COT positioning of hedge funds.