Anyone Knows GBPCHF?

[torero 10]

I was introduced to this pair a few weeks ago (in chat room. Thx Jwhite) and I'm amazed with the move. I thought Guppy swing was wide, but this one tops it all, wow! And I thought CHF was boring.

 

Anyway, I see that the pair spread is a bit wide (average 5 pips). I assume this is only way to profit is a longer term play (I'm a day trader). Anyone has recommendation the minimum time frame I should be looking at to trade this pair? Thanks.

[milliard 10]

Krantzy & Anna-Maria trade it ever now & again. I know she's had it on her radar as it flirted with 2.2570-50 (daily) & again further down here at 2.1250 (hourlies).

 

It's average daily (weekly) range coverage matches that of the volatile Geppy, as opposed to the other popular pairs.

 

They certainly don't daytrade it though. Preferring to run it via the slightly longer timeframe outlook given it's propensity to trek thru the levels fairly effortlessly.

[torero 10]

I figured that as much. Is this one sensitive to US news such as NFP or rate changes?

[milliard 10]

You’ll find most of the factors which drive this pair will emanate from the local influences (Swiss/British vibration).

 

Dollar-Swiss is sometimes impacted by movements in cross exchange currents, such as GBPCHF & EURCHF. Typically, interest rate & key inflationary data which prints Franc negative, will knock onto Swiss weakness & in turn drag on the Dollar-Swiss.

 

The only times that outside factors affect the rhythm of this pair is if a move on Cable or Swiss gets extended via a rogue print in say NFP or a unique fundamental development kicks Cable or Swiss cross pairings temporarily out of whack.

 

A good deal of importer-exporter activity also transacts & feeds this pair, especially given it’s close border (geographic) proximity to Eurozone & GB.

[torero 10]

So it does have some influence. I was looking at this range to play and wasn't sure if holding it through the NFP would be a good idea. It's NFP may help break this range play if it has a big impact depending on results. Thanks, millard

[milliard 10]

They don’t really get too excited about individual economic releases torero when running positions on these animals.

 

Intraday is a different ball game, but it’s rare Art or Anna will drill down & get involved in that arena to be honest. It has to be for a very specific reason before they’ll waste energy chasing these bucking bronco's all over the grid.

 

I know she’s got 2.0850 (weekly tech interest) & the aforementioned 2.1250 flagged on trips back up + the 1.9650 & 1.9450 zones tagged to the downside. Anything which occurs either side of their entry-stop-next interest zone barriers is usually given a low interest rating.

 

I can’t really be of any more help regards your observations as I have no idea of your trade structures or aims etc.

 

I do know they will occasionally allow a pretty loose rein (stops) on their initial entries (& usually cover them via option plays or jobbing exercises etc) if they’re particularly interested in getting aboard at a value range or supply-demand camp.

 

But then, a lot of their larger positional plays have less to do with technicals & more to do with fundamentals & psychology.

 

If you’re viewing it from a shorter timeframe play (sub hourly) or a tighter risk option, then I’m not your man I’m afraid.

[smwinc 20]

I've not tried doing this in practice, but to mitigate the affects of the spread, you could consider creating your own GBP/CHF through the GBP futures and CHF futures on the GLOBEX - simultaneously buy (sell) the GBP futures & sell (buy) the CHF futures.