GBP/CHF Consolidating

For a while now GBP/CHF has been consolidating at a support level around 1.2000-1.2100. The pair seems to have reached a level where market participants need to decide what to do next. On the one hand we have GBP bears that witnessed the latest flash crash on Oct 7 when the Sterling went down 6% only to recover more than half. The drop came as a surprise when volume traded was at a very low level. GBP/CHF from 1.2381 to a low of 1.1606 and a few hours later was 1.21. 

Since then, the pair has been trading sideways well below the 200SMA and dangerously playing with the support level. Bulls, on the other hand, will need massive action if they want to see prices soar. They have no advantage as we know how fragile the UK currency currently is, moreover, the pain from leaving the EU is yet to be felt, which could dramatically worsen the performance of the Sterling. 

A good position, either long or short, would be one with a tight stop somewhere in the range of 1.19 and 1.22. 

Chart: GBP/CHF D1