Key Points
- The British Pound traded higher vs the Swiss franc, and the daily chart of GBPCHF looks bullish.
- The pair is currently trading near the 200-day simple moving average, which buyers must break in order to ignite more gains.
- In the UK, the Net Borrowing released by the National Statistics posted a reading of £6.582B, more than the forecast of £6.200B in April 2016.
- The CBI Distributive Trades Survey released by the Confederation of British Industry posted a rise from -13 to 7 in May 2016.
Technical Analysis
The British Pound gained a lot of bids recently vs the Swiss franc, and traded above the 1.4400 resistance area. There is a bullish trend line formed on the daily chart of the GBPCHF pair, which is acting as an upside move catalyst.
However, the pair is currently trading near the 200-day simple moving average, which is preventing gains and acting as a hurdle.
A break and close above the 200-day SMA may call for a move higher may be towards the 61.8% Fib retracement level of the last drop from the 1.5545 high to 1.3431 low.
CBI Distributive Trades Survey
Today, the CBI Distributive Trades Survey report was released by the Confederation of British Industry. The survey holds a lot of importance in the trends in the UK retail and wholesale distribution sector, and was forecasted to rise from -13 to 7 in May 2016.
The outcome was positive, as the CBI Distributive Trades Survey posted an increase as forecasted. The report added that, “within retail, department stores, specialist food & drink and grocers were weak performers. But this was offset by growth in other sectors, such as hardware & DIY, clothing and recreational goods”.
The British Pound is trading with a bullish trend, and it is very likely that the current trend may continue in the short term.
