Key Points
- The British Pound traded lower against the Swiss Franc, but found support near 1.2790.
- There is a monster bullish trend line formed on the hourly chart of GBPCHF, which is acting as a barrier for sellers at 1.2800.
- Today in Switzerland, the Producer and Import Prices was published by the Federal Statistical Office.
- The result was on the lower side, as there was a decline of 0.6% in Nov 2016, compared with Nov 2015.
GBPCHF Technical Analysis
The British Pound declined recently from the 1.2896 high to 1.2787 against the Swiss franc where it found buyers. There is a monster bullish trend line formed on the hourly chart of GBPCHF that defended the downside move at 1.2787.
The pair is currently moving higher, and already broke the 23.6% Fib retracement level of the last decline from the 1.2896 high to 1.2787 low.
The pair may continue to move higher, and the next hurdle is around the 21 hourly simple moving average and the 50% Fib retracement level of the last decline from the 1.2896 high to 1.2787 low.
French Consumer Price Index
Today in Switzerland, the Producer and Import Prices, which is an indicator of consumer price inflation was provided by the Federal Statistical Office. The last decrease was 0.2%, and the market was expecting a lower reading this time.
However, the result was lower, as there was a decline of 0.6% in Nov 2016, compared with the same month a year ago. The report added that the “Producer and Import Price Index rose in November 2016 by 0.1% compared with the previous month, reaching 99.9 points (base December 2015 = 100). The slight rise is due in particular to higher prices for scrap and petroleum products”.
Overall, the Swiss Franc may come under pressure, so there is a chance of GBPCHF gaining ground in the short term.
