Key Points
- The British Pound registered good intraday gains against the Swiss Franc, and remained in an uptrend.
- There is a crucial ascending channel pattern formed on the hourly chart of the GBPCHF pair, acting as a catalyst for gains.
- In the UK, the CBI Industrial Trends Survey was released by the Confederation of British Industry.
- The market was expecting a decline from -4 to -9, but it came in at -5 in August 2016.
GBPCHF Technical Analysis
The British Pound surged higher during the past few sessions, and posted a new high of 1.2685 versus the Swiss Franc. The GBPCHF pair is an uptrend and following a crucial ascending channel pattern formed on the hourly chart.
The pair may dip a few pips from the current levels, but might support near the 23.6% Fib retracement level of the last wave from the 1.2567 low to 1.2685 high.
Buying dips are favored as long as the pair is above the channel trend line support.
CBI Industrial Trends Survey
Today in the UK, the CBI Industrial Trends Survey, which gives expert qualitative opinion from senior manufacturing executives, on past and expected trends in output, exports, prices, costs, investment intentions, business confidence and capacity utilization was released by the Confederation of British Industry.
The market was expecting a decline from -4 to -9 in August 2016, compared with the previous month. However, the result was above the forecast, as the CBI Industrial Trends Survey came in at -5. The report added that “Despite the improvement in exports, total order books were largely unchanged but remained comfortably above the long–run average. Output growth remained at a healthy pace, although a little weaker than in the three months to July.”
Overall, the British Pound is trading with a bullish bias versus the Swiss Franc and may continue to rise in the short term.
