Key Points
- The British Pound recently recovered against the Swiss Franc, but faced sellers near 1.2750.
- There is a bearish trend line formed on the hourly chart of GBPCHF, which may act as a resistance on the upside near 1.2780.
- In Switzerland today, the Trade Balance report was released by the Federal Customs Administration.
- The result was positive, as there was a trade surplus of 3,636M in Nov 2016, compared with the last revised surplus of 2,657M.
GBPCHF Technical Analysis
The British Pound traded lower towards 1.2650 against the Swiss Franc before starting a recovery. The GBPCHF pair recovered, but failed to break a support turned resistance area at 1.2750-55. The stated levels acted as a strong resistance and preventing a break.
Moreover, there is also a bearish trend line formed on the hourly chart of GBPCHF, which may act as a resistance near 1.2780 if there is a break above 1.2750.
If the pair continues to fail near the resistance area, there is a chance of a dip in the short term. In that case, a test of the 1.2700 handle is possible.
Switzerland Trade Balance
Today in Switzerland, the Trade Balance, which is a measure of balance amount between import and export was released by the Federal Customs Administration. The market was positioned for an improvement from the last time in Nov 2016.
However, the result was positive, as there was a trade surplus of 3,636M in Nov 2016. The report stated that “November was one working day more than in the previous year: adjusted exports fell by 2.1% (real: – 3.7%), while imports by 4.9% (real: – 6, 1%). On the export side, the deliveries of the two largest divisions stagnated. The trade balance resulted in a large surplus of CHF 3.6 billion”.
The Swiss Franc was seen trading higher after the release, but the bulls need to gain momentum for further traction in the short term.
