GBPCHF: Pound to Swiss Franc Exchange Rate, Chart, Forecast
The GBPCHF pair is probably not the first currency pair that novice traders turn to. However, that doesn't mean that investors should ignore the GBP/CHF pair. In fact, this currency pair has many unique features and strengths that make it a favourite choice for short-term traders. In this article, we will explain everything about the GBP CHF currency pair.
We will look at its historical development as well as the current technical environment. We will also discuss the GBP CHF forecast and provide valuable tips to help investors trade GBP/CHF in ideal conditions. Finally, we will introduce you to an online broker that we feel is one of the best for GBPCHF trading, for many reasons that we will detail.
What is GBPCHF? Overview
Like all currency pairs that do not contain the dollar, the GBPCHF pair is called a cross-currency pair. The GBP CHF pair measures the British pound against the Swiss franc. Specifically, the GBPCHF exchange rate tells us the value of one British pound in Swiss francs. In other words, the GBP/CHF rate tells us how many Swiss francs it takes to buy one GBP.
We will come back to this point in more detail later in this article, but we can already say that the evolution of the GBP vs CHF pair depends on the economies that are linked to it, namely that of Great Britain and Switzerland.
Therefore, the evolution of the GBPCHF exchange rate depends simultaneously on the health of the British and Swiss economies, or rather on the comparison of the economic health of the two countries. As is the case for many cross-currency pairs, traders should also note that the GBP to CHF pair has a higher volatility than the average of major Forex pairs.
This means that the potential for gains in the GBP CHF can be very large. However, investors should not forget that this will also be the case for losses. You should also note that trading the GBP/CHF is mainly for short-term trading. Indeed, the currency market, in general, is much more suited to the short term than investments over many years.
Below you will the GBPCHF live rate with the help of a real time chart.
How to Read the GBPCHF Chart
Investors need to understand that the GBPCHF chart and currency pair charts generally work slightly differently than they do with stocks. Indeed, while the price is always expressed in dollars on US stocks, the currency denomination differs from pair to pair on Forex.
It is always the price of a currency expressed in another currency. In the case of the GBPCHF pair, it is the price of 1 GBP to CHF. With this information, people can convert GBP to CHF.
If you want to convert CHF to GBP (Swiss Francs to Pounds), you will need to look at th CHF GBP exchange rate and chart, but it is not a tradable asset.
From a vocabulary point of view, readers should note that the first currency of the pair, in this case, the GBP, is called the base currency. The second currency, in this case, CHF, is called the quote currency.
GBPCHF Historical Data
In the section below, we will look at the history of the GBPCHF rate. We will first look at the major phases in the evolution of the GBPCHF exchange rate before taking a closer look at the current charting environment.
GBPCHF Exchange Rate History
The evolution of the GBPCHF exchange rate over its history has been relatively clear and can be broken down into several distinct phases.
After ending a downtrend at the end of 1995, the GBP/CHF began an uptrend that resulted in an all-time high of 2.73 in April 2000. Following this record, the GBPCHF went into a downtrend, resulting in an all-time low of 1.1115 in March 2000.
Although it is still too early to make a definitive statement, the GBPCHF has recently shown signs of rebounding. There is reason to believe that the GBPCHF's decades-long downtrend is ending, as we will see in the next section dedicated to analysing the GBPCHF's current chart pattern. Thus, a recovery in the GBPCHF as part of a new long-term uptrend cannot be ruled out.
GBPCHF Exchange Rate Today
Although the overall trend for the GBPCHF has been bearish over the past few years, several signals indicate that this negative phase is now over.
Indeed, in 2021, the GBPCHF managed to break back above its 100-week moving average, serving as support afterward. In addition, 2021 also saw the break above a downtrend line that had been valid for several years.
These are essential medium-term bullish signals that indicate that the GBPCHF may be entering a positive trend line. In this context, the first significant target to reach will be the psychological threshold of 1.3000. On the downside, a break of the GBP/CHF below the major threshold of 1.2000 would challenge this bullish scenario.
What Influences GBPCHF Exchange Rate?
To enable you to predict the GBPCHF exchange rate better yourself, we will explain below which economic factors are most influential.
Central Bank Monetary Policy
Central banks control the money supply by manipulating interest rates. The higher the interest rate of a currency, the more active it is in the eyes of investors, who get better returns for money investments in that currency.
In the case of the GBPCHF rate, we will therefore be interested in the monetary policy of the BoE and the SNB. The idea is to analyze the interest rate differential between the two central banks to see which currency has the advantage. If the BoE rate is higher than the SNB rate, this is a bullish factor for the GBP/CHF and vice versa.
Between each central bank meeting, many economic indicators are published. These economic indicators guide the monetary policy of central banks. It is, therefore, crucial to follow the economic statistics when trading Forex. In the case of the exchange rate GBP to CHF, we will be interested in British statistics and Swiss statistics.
Good surprises for the Swiss statistics may push up the price of the CHF. Similarly, good UK statistics will be a bullish factor for the GBP. Therefore, all GBP CHF traders should check the economic calendar each day to see what economic indicators are on the agenda for the day.
Market Risk Sentiment
The Swiss franc is considered a safe haven. Indeed, the solidity of the Swiss banking system and the country's political neutrality reassure investors. This means that periods of market panic and weak growth may favour the Swiss franc and thus the GBP/CHF.
Conversely, when investors' risk appetite is very high, periods of market euphoria will tend to penalize the CHF, resulting in a bullish impact on the GBPCHF currency pair.
GBP CHF Forecast and Predictions
In this section, we will discuss the GBP CHF forecast 2022. However, we would like to remind you that most investors are short-term traders of the GBPCHF rate and other Forex pairs.
The unpredictability of economic trends and central bank monetary policy make forecasts for currency pairs, including GBPCHF, unreliable. This is why the currency market is mainly approached in the context of short-term trading.
However, we have been able to glean from our research some GBP CHF forecast, which we have compiled in the table below.
GBP CHF Forecast 2022
As you can see, there is a wide range of targets among forecasters regarding the evolution of the GBPCHF exchange rate in the medium term.
Why Trade GBPCHF Today?
Below we will list the main advantages we believe of trading the GBP in CHF.
- Volatility: The volatility of the GBPCHF is undoubtedly higher than that of the most popular currency pairs in Forex. This volatility is advantageous for those who want to aim for significant gains quickly while accepting the risk of rapidly posting large losses.
- Leverage: A common advantage of all Forex currency pairs is that they can be traded with high leverage. This leverage, combined with the market's inherent volatility, makes the GBPCHF pair a very high potential trading instrument.
- Few major events: Currency pairs that are not tied to the dollar, like GBP CHF, have the advantage of being subject to the influence of fewer economic indicators. While the US releases many statistics every day that can influence all dollar-linked pairs, there are far fewer events that can potentially affect GBPCHF.
- An easy market to analyse: Most Forex traders rely primarily on technical analysis to make their trading decisions. It is also enough to follow the economic calendar to find out about potentially influential events. In other words, the GBPCHF pair is relatively easy to follow and analyse.
- 24-hour trading: Finally, another advantage common to all Forex currency pairs is that it is possible to trade in the evening and night. In fact, the currency market is open 24 hours a day. This allows novice traders to practice trading outside of business hours while still going to work daily.
Where Can I Invest in the GBPCHF Pair?
It is sometimes difficult to choose an online broker as there are so many. That's why we've reviewed many of them to determine which is the best one to trade GBP in CHF. And the name that came up most often was the broker ZFX.
ZFX provides its clients with the MT4 trading platform, which is the most widely used globally thanks to its many technical analysis and automated trading advantages.
Also, as you can see by yourself with a demo account, the spread for GBPCHF is usually lower than 3 pips. Finally, it is worth noting that ZFX offers its clients to trade stocks, indices, forex and commodities.
How to Trade GBPCHF Now
Trading GBPCHF through the broker ZFX is very simple and fast. Indeed, the account opening is done entirely online, and takes only a few minutes. Let's go through each step in detail.
1 - Register with ZFX
For this first step, you will need to go to the ZFX broker's website, and click on the "open an account" button. You will then have to fill in a registration form with several personal details, including your phone number, which will be verified by SMS.
After filling out the form, click on the "Next" button at the bottom of the page. Immediately after this step, ZFX will display your MT4 login and password, and invite you to download the platform.
2 - Make your first deposit
To do this, click on "Make a deposit" on the screen displayed immediately after registration. You will then be asked to choose a payment method. Let's take Mastercard as an example:
On this screen you need to indicate the deposit amount and then click on the "Confirm Deposit" button. Next, enter your credit card information before the final validation of the payment.
3 - Account verification
Finally, it will also be necessary to proceed with the account verification by sending supporting documents.
As shown in the image above, you will need to upload the documents directly to the ZFX website.
4 – Trade GBPCHF
Once your documents are validated, you will then be ready to trade GBPCHF.
Tips for GBPCHF Beginner Traders
For you to get started with GBPCHF trading in the best possible way, we have put together the tips below that we feel are most important, especially for GBP/CHF beginner traders.
Learn GBPCHF technical analysis
As we have just mentioned, most GBPCHF traders base their decisions on technical analysis. But technical analysis is quick and easy to learn. GBPCHF technical analysis relies mainly on visuals and therefore does not require any financial or even mathematical skills. In addition, there are many free resources on the internet to learn technical analysis. If you get serious about it, you can learn enough to develop your first trading method in a few days.
Building a GBPCHF Trading Method
Speaking of trading methods, it's important to remember that it's essential to put technical analysis lessons into a coherent GBP vs CHF strategy. For example, you will need to choose which signals you will follow to open and close a GBPCHF trade. You will also need to decide which time frames you want to work on first. You should also not forget to define rules and a risk management strategy that will determine the positioning of your stops and limits.
Choosing a good GBPCHF broker
Learning GBPCHF technical analysis and building a trading method is not enough to succeed. You will also need to choose an efficient and secure broker. In particular, it will be essential to choose a regulated broker. You will also need to check that the trading platform offered by your broker meets your needs in terms of trading indicators, speed of transactions, and general functionality. Finally, you will also need to learn about the GBPCHF spread to ensure that the fees will not reduce your trading performance too much.
Learn from the perspective of other traders
Finally, while it is essential to make your own trading decisions, it is also worth looking at the opinions of other GBPCHF traders. For example, you can read GBPCHF news or analysis. It is also possible to subscribe to forex trading signals that will contain advice on the GBPCHF rate. The goal is not to rely on other people's advice. Rather, you want to get different points of view to enrich your own.
Bottom Line: Is GBPCHF a Good Investment Now?
As we have seen in this analysis, there are many reasons to be interested in the GBP CHF pair. It is indeed a trading instrument with high-profit potential. It is also a currency pair that allows you to diversify away from dollar-related currency pairs.
If you would like to start boosting your trading performance with the GBPCHF pair, we invite you to learn more about the online broker ZFX now. Our research for this guide has indeed shown that this is probably the best broker for GBP to CHF trading, thanks to their quality trading platform and low fees.