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The British pound traded higher recently and enjoyed good gains against the US dollar and the Swiss franc. It traded above the 1.4180 level recently in GBPCHF where sellers managed to defend the upside. The GBPCHF pair looks like correcting lower, but there are several support areas on the way down for the pair. There is a major release lined up today, as the UK Trade Balance report will be released by National Statistics. The last reading was a trade deficit of £-2.649B, and the market is expecting £-3.000B this time. Let us see how it shapes up and affects the GBPUSD and GBPCHF pairs moving ahead.

There is a monster bullish trend line formed on the hourly chart of the GBPCHF pair, which acted as a barrier for sellers on many times. The most critical thing to note is that the same trend line is now coinciding with the 100 hour moving average, which is a crucial support in the near term. If the pair corrects lower from the current levels, then it might find support around the 23.6% fib retracement level of the last leg from the 1.3782 low to 1.4185 high, which is just above the highlighted trend line. So, there is a major support around the 1.4080 level. If the pair moves lower from the current levels, then it might struggle to break the mentioned area.

On the upside, initial resistance is around the last high of 1.4185. A break above the same might take the pair towards the 1.4250 level.

Overall, one might consider buying dips in the GBPCHF pair as long as it is trading above the 100 hour MA.

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Posted By IKOFX Technical Team: Online Forex Broker
Website – http://ikofx.com