Sterling is holding on to yesterday’s strong gain today and remains the strongest one for the week. The Pound was lifted overnight after Brexit Partly leader Nigel Farage surprisingly announced not to filed any candidate to compete for the 317 seats held by the Conservatives. The decision came after Prime Minister Boris Johnson pledged to take UK out of the EU by 2020 and to pursue a Canada-style trade deal.
Farage added “I have got no great love for the Conservative party at all, but I can see right now that by giving Boris half a chance … and stopping the fanatics in the Liberal Democrats – they even want to revoke the result of the referendum – I think our action, our announcement today, prevents a second referendum from happening.”
Despite the rally, GBP/CHF is staying in very tight range below 1.2892 temporary top. There is no rally resumption yet. Near term outlook stays bullish as long as 1.2473 resistance turned support holds. Rise from 1.1674 is expected to target 1.3399 resistance at a later stage.
