Key Points
- The British Pound suffered a setback against the Swiss Franc recently, as it traded down.
- There is a bearish trend line formed on the hourly chart of the GBPCHF pair, which is acting as a resistance.
- Today in the UK, the Consumer Price Index was released by the National Statistics for the month of June 2016.
- The result was above the forecast, as there was a rise of 0.2% in the CPI compared with the previous month.
Technical Analysis
The British Pound after a test of the 1.3200 level against the Swiss Franc found sellers and started to move down. There is currently a bearish trend line formed on the hourly chart of the GBPCHF pair, which is acting as a resistance and pushing the pair down.
On the downside, there is a major support area at 1.2920, providing support to the bulls.
Overall, the pair is in a downtrend and may trade further lower in the short term.
UK CPI
Today in the UK, the Consumer Price Index was released by the National Statistics. The market was expecting the price changes by the comparison between the retail prices of a representative shopping basket of goods and services to increase by 0.1% in June 2016.
However, the result was positive, as there was a rise of 0.2% in June 2016, compared with the previous month. The report stated that “Rises in air fares, prices for motor fuels and a variety of recreational and cultural goods and services were the main contributors to the increase in the rate. These upward pressures were partially offset by falls in the price of furniture and furnishings and accommodation services”.
The impact was not positive for the GBPCHF pair, as it was seen weakening, and going forward might weaken further.
