The GBP/CHF pair looks very odd as it is the "odd man out" on the rally. This is particularly important as the markets around the world rallied - something that normally sends this pair much higher. Because of this, we are a bit cautious with all things risk related. The reaction in the GBP in general could be because the UK banks may be saved some pain via the rumored agreement on European contagion remedies in Brussels. One sticking point: The details haven't been released yet, and the market may be ahead of itself. The GBP/CHF is certainly in a downtrend, and a move back down isn't a big stretch of the imagination. It is with this backdrop that we are suspicious of the GBP/USD move upward on Thursday.
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