Key Points
- The British gained bids near 1.2505 against the Swiss Franc and traded higher.
- Earlier, the GBPCHF pair fell after breaking a bullish trend line formed on the hourly chart.
- Today in the UK, the Gross Domestic Product was released by the National Statistics.
- The result was above the forecast, as there was a rise of 0.7% Q2 2016.
GBPCHF Technical Analysis
The British Pound spiked higher against the Swiss Franc after the release of the Gross Domestic Product. The GBPCHF surged and broke the 23.6% Fib retracement level of the last drop from the 1.2676 high to 1.2505 low.
Before the GBPCHF pair under pressure and also fell below a bullish trend line formed on the hourly chart. The same trend line along with the 21 hourly simple moving average may act as a resistance.
There is a chance of a reaction near the highlighted resistance of 1.2600, but the bulls may also break it going forward.
UK GDP
Today in the UK, the Gross Domestic Product, which is a measure of the total value of all goods and services produced by the UK was released by the National Statistics.
The market was expecting a rise of 0.6% in the GDP in Q2 2016, compared with the previous quarter. However, the result was encouraging, as there was an increase of 0.7%. The report stated that “GDP in current prices increased by 1.5% between Quarter 1 2016 and Quarter 2 2016, revised down 0.1 percentage points from the previously published estimate. The households and non-profit institutions serving households saving ratio was estimated to be 5.1% in Quarter 2 2016 compared with 5.6% in Quarter 1 2016. In 2015, the saving ratio was estimated to be 6.1%“.
Overall, the British Pound may rise from the current levels, and if there is a break above 1.2600, more gains are feasible.
