Key Points
- The British Pound traded lower against the Swiss Franc, and broke the 1.2800 support area.
- There is a bearish trend line formed on the hourly chart of GBPCHF, which is acting as a resistance near 1.2760-70.
- Today in the UK, the Halifax House Price Index was released by the HBOS.
- The result was in line with the forecast, as there was a rise of 0.2% in Nov 2016, compared with the previous month.
GBPCHF Technical Analysis
The British Pound remained under a bearish pressure against the Swiss Franc, and recently broke a major support area at 1.2800, which may now act as a resistance if the GBPCHF pair corrects higher from the current levels.
There is a bearish trend line formed on the hourly chart, which may act as a resistance on the upside. It also coincides with the 38.2% fib retracement level of the last decline from the 1.2819 high to 1.2724 low.
So, one may consider selling rallies in GBPCHF in the short term near the trend line resistance with a tight stop.
UK Halifax House Price Index
Today in the UK, the Halifax House Price Index, which is the UK”s longest running monthly house price series presents house prices and property price movements on a like-for-like basis was released by the HBOS.
The market was expecting a rise of 0.2% in Nov 2016, compared with the previous month. The result was in line with the forecast, and even the yearly change reading matched the forecast of 6%. Commenting on the report, the Halifax housing economist, Martin Ellis, stated “House prices in the three months to November were 0.8% higher than in the previous quarter. This increase followed little movement in prices on this quarterly measure in both September and October. The annual rate of growth also increased, rising for the first time for eight months, from 5.2% in October to 6.0%”.
The British Pound failed to gain post the result, and it looks like the GBPCHF pair may decline further towards the 1.2720 level.
