GBP/CHF Roller Coaster Ride

The speech by the UK Prime minister Theresa May focused on holding general elections on June 8. The news initially drove investors away from the Sterling but just a few minutes before the speech ended, the Sterling skyrocketed leaving all bears caught by surprise. 

One of the most influenced pairs was the GBP/.CHF pair which reacted bearishly right at the resistance line at 1.2640. The pair reached a low of 1.2551, then spiked to a high above 1.2683. 

Economic growth, according to Theresa May, has exceeded all expectations and the leaving of the EU would not be a disaster as expected by many people. 

Other GBP pairs were also influenced by the speech. GBP/USD is now 1.2664. Overall, a very positive reaction in the Bullish camp of the UK currency.

Chart: GBP/CHF H4