Key Points
- The British Pound is currently trading positively against the Swiss Franc, and may soon test the 1.2670 level.
- The GBPCHF pair is about to break a bearish trend line on the hourly chart at 1.2620, which may ignite an upside move.
- Today in the UK, the Consumer Credit figure was released by the Bank of England.
- There outcome was better, as it came in at £1.618B in Oct 2016, compared with the forecast of £1.500B.
GBPCHF Technical Analysis
The British Pound recently traded lower towards 1.2550 against the Swiss Franc and then started moving higher. The recent bounce was also from the 61.8% Fib retracement level of the last wave from the 1.2486 low to 1.2690 high.
The pair moved just moved above the 21 hourly simple moving average, and currently attempting to break a bearish trend line on the hourly chart.
If there is a break above the trend line resistance, then there is a chance of an upside move towards the next resistance area of 1.2670.
UK Consumer Credit
Today in the UK, the Consumer Credit, which is an amount of money that individuals borrowed in the previous month was released by the Bank of England.
The market was aligned for £1.500B in Oct 2016, compared with the previous month figure of £1.484B. However, the result was better, as it came in at £1.618B. The Mortgage Approvals also posted a better than expected reading of 67.518K. Moreover, the M4 Money, which is widely referred as “broad money” or simply “money supply” posted an increase of 6.4% in Oct 2016, compared with the same month a year ago. It was above the forecast of 6.2%.
Overall, the GBPCHF pair may spike higher in the short term, but could face sellers near the 1.2650-70 levels.
