Pound-Swiss Franc Rate Pierces Above 1.30, Technical Bull Flag Bodes for Further Strength

The Pound-Franc rate has broken above a key trendline drawn from the April 16 highs and is consolidating before a probable extension higher.

The Swiss Franc sold off sharply during the overnight session in what has been described as "flash crash", which remains a mystery to traders, although the market is conscious that strength in the safe-haven currency's exchange rate could easily draw the Swiss National Bank into the fold during the coming weeks. 

The Pound-to-Franc exchange rate has broken above a major trendline and is consolidating before a probable extension higher. Longer-term it is predisposed to more upside should Brexit tensions unwind.

If GBP/CHF can successfully break above the trendline it will open the way higher and suggest a much more bullish outlook, yet, in truth, some major obstacles lie in the way, and the bullish forecast is conditional on a break clearly above them.