Key Points
- The British Pound started an uptrend from the 1.2260 level against the Swiss Franc and likely to trade higher in the near term.
- There was a contracting triangle pattern with resistance at 1.2350 on the hourly chart of GBPCHF, which was broken recently towards the upside.
- Today in the UK, the Mortgage Approvals figure for May 2017 was published by the British Bankers’ Association (BBA).
- The outcome was above the forecast, as the Mortgage Approvals came in at 40.35K, more than the forecast of 40.30K.
GBPCHF Technical Analysis
The British Pound was seen trading higher from the 1.2260 swing low against the Swiss Franc, which later got traction. The GBPCHF pair moved higher and broke the 21 hourly simple moving average and the 23.6% Fib retracement level of the last decline from the 1.2465 high to 1.2263 low.
The pair also broke a contracting triangle pattern with resistance at 1.2350 on the hourly chart and the 38.2% Fib retracement level of the last decline from the 1.2465 high to 1.2263 low.
The next hurdle is the 1.2370 level, which is just above the 50% Fib retracement level of the last decline from the 1.2465 high to 1.2263 low. A break and close above the 1.2370-80 levels could ignite an upside move above the 1.2400 handle.
UK Mortgage Approvals
Today in the UK, the Mortgage Approvals figure for May 2017 was published by the British Bankers’ Association (BBA). The forecast was lined up for the Approval to post 40.30K in May 2017, compared with the last reading of 40.69K.
However, the result was above the forecast, as the Mortgage Approvals came in at 40.35K, more than the forecast of 40.30K. The report added that “The BBA’s latest data from the high street banks* shows that consumer credit growth was 5.1% in May, compared with 6.4% in the previous month. Gross mortgage borrowing totalled £13.3 billion in May. Net mortgage borrowing was 2.4% higher than a year ago.”
Overall, the GBPCHF pair is likely to gain momentum soon and trade above the 1.2385 level in the near term.
