Key Points
- The British Pound after trading as high as 1.3080 against the Swiss Franc found sellers and declined.
- There is a bearish trend line formed on the hourly chart of the GBPCHF pair, acting as a downside catalyst.
- Earlier today, the UK Mortgage Approvals released by the Bank of England came in at 64.766K.
- Moreover, the UK Consumer Credit came in at £1.837B in June 2016, more than the forecast.
Technical Analysis
The British Pound tumbled today against the Swiss franc, as there was a failure to break the 1.3080 resistance area earlier. There is a bearish trend line formed on the hourly chart of the GBPCHF pair, which is acting as a hurdle for buyers and pushing the pair down.
The pair may correct a few pips in the near term, but it could face sellers around the trend line resistance area.
On the downside, a break below 1.2820 could open the doors for a test of the 1.2800 handle.
UK Mortgage Approvals
Earlier today during the European session, the UK Mortgage Approvals, which presents the number of various Mortgage Approvals was released by the Bank of England.
The forecast was slated for a reading of 65.65K in June 2016. However, the outcome was a bit lower, as it came in at 64.766K. On the other hand, the UK Consumer Credit came in at £1.837B in June 2016, which was more than the forecast of £1.400B. Moreover, the report stated that “UK broad money, M4, is defined as M4 excluding intermediate other financial corporations (OFCs). M4 ex increased by £18.6 billion in June, compared to the average monthly increase of £8.3 billion over the previous six months”.
Overall, there was hardly anything to impress the GBP bulls, which means more losses are possible for the GBPCHF pair in the short term.
