- British Pound struggling to trade higher against the Swiss Franc and may trade lower.
- GBPCHF pair is facing a major resistance near 1.4640, which is coinciding with the 50 hourly simple moving average.
- Swiss Consumer Price Index published by the Swiss Federal Statistical Office came in at -0.3% in December 2015, missing the forecast of -0.2%.
- The yearly Swiss CPI declined by 1.3% in December 2015, compared Dec 2014.
The GBPCHF pair recently traded near 1.4640 where it found sellers, as the 50 hourly simple moving average stalled gains and ignited a downside move. The pair also failed to break the 38.2% Fib retracement level of the last drop from the 1.4835 high to 1.4503 low.
On the downside, the 1.4520 can be seen as a support area. However, if sellers gain control then the last low of 1.4503 may be tested in the near term.
On the upside, there are many hurdles for buyers starting with the 50 MA, followed by the 100 MA.
The Swiss Consumer Price Index, determining the average price change for all goods and services purchased by households for consumption purposes was published by the Swiss Federal Statistical Office. The market was expecting a decrease in the CPI by 0.3% in December 2015, compared with Nov 2015. The outcome was lower, as the Swiss CPI declined 0.4%, and even the yearly change CPI was disappointing as it declined by 1.3% in December 2015, compared Dec 2014.
Overall, the report was not in favor of the Swiss Franc buyers. So, we need to see whether it can help the GBPCHF pair in recovery or not in the near term.
If GBP continues to slide, then even weakness in the Swiss Franc won’t be able to help the GBPCHF pair.