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There British pound managed to gain traction against the Swiss franc recently and jumped above the 1.3840 resistance area. The GBPCHF pair is following a nice bullish trend, which might continue in the near term, as the British pound seems to be gaining momentum. There is an important release lined up during the London session, as the UK Consumer Credit report will be released by the Bank of England. The market is expecting it to register a reading of £1.200B in December 2014. Let us see how the British pound reacts to the outcome and whether it can continue trading higher or not moving ahead.
There is a monster bullish trend line formed on the hourly chart of the GBPCHF pair, which is acting as a barrier for the British pound sellers. The pair is well above the 100 and 200 hour moving average, which is a positive sign. However, the pair is trading around the highlighted trend line, and it would be interesting to see how the pair trades in the near term. The chance of a break lower is less, as the hourly RSI is also above the 50 mark. It somewhat depends on the incoming economic data. If the pair continues to trade higher, then a move above the last high of 1.3973 might take the pair towards the 1.40 level in the short term.
If the British pound sellers manage to clear the highlighted trend line, then the pair might head towards the 100 hour MA.
Overall, one might consider buying dips in the GBPCHF pair as long as it is trading above the stated trend line.
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Posted By IKOFX Technical Team: Online Forex Broker
Website – http://ikofx.com
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