- GBPCHF is trading higher, but is has less to do with the British Pound strength and more to do with the Swiss Franc weakness.
- There is an ascending channel pattern formed on the hourly chart, which is acting as a catalyst for an upside move.
- UK Gross Domestic Product was reported by the National Statistics today for Q3 2015, which registered an increase of 0.5% just as the market expected.
- When we analyze the year-over-year change, then the UK GDP increased 2.3%.
As mentioned, the GBPCHF pair is following a nice bullish path that may ignite more gains in the near term. The best part is the fact that the channel support trend line is aligned with the 100, 200 and 50 simple moving average. So, there is a major support around 1.5540-50.
On the upside, a break above the channel resistance area is needed for more gains that may take the GBPCHF pair towards 1.5580.
The hourly RSI is above the 50 level, suggesting buyers are in control for an upside move.
Today, the UK saw a major economic release by the National Statistics, as the Gross Domestic Product, measuring the total value of all goods and services was published. The forecast was slated for a rise of 0.5% in Q3 2015, compared with the preceding quarter. The result was as expected and posted an increase of 0.5%, which is same as of the previous reading.
There was another release, as the UK Total Business Investment was reported. The market was expecting an increase of 1.5% in Q3 2015, compared with the preceding quarter. However, the result was higher, as it posted a rise of 2.2%.
Overall, the Swiss Franc weakness is keeping the bullish sentiment intact for the GBPCHF pair, and buying dips remain a good idea.