…but GBP has climbed today
Risk aversion and the downfall of Theresa May were the stories this week in the market. The trade war weighed on risk assets and that made the Swiss franc the top performer. Right behind was the Australian dollar, which benefited from the election surprise.
At the bottom of the pile was the pound as it was hammered once again on political uncertainty and the Brexit fiasco. In a small promising sign, it climbed 60 pips on Friday to blunt the losses after May showed herself the door. Just behind the pound was the loonie, which was dragged lower by the implosion in crude oil.
The GBP/CHF chart is an interesting one. It flashed a double top on May 6 and that was a major selling signal. It’s since fallen nearly 700 pips. With all the major moving averages now broken, there isn’t much support until 1.24.