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Market Analysis

Home » Technical Analysis » Daily » GBPCHF – British Pound Facing A Tough Resistance

GBPCHF – British Pound Facing A Tough Resistance

Posted by FXTimes in Daily - June 7th, 2016 2:07 pm GMT

pound 14

Key Points

  • The British Pound remained under a lot of bearish pressure recently against most major currencies due to fears of Brexit.
  • It also traded lower vs the Swiss franc, and every recovery in the GBPCHF pair was sold.
  • There is a bearish trend line formed on the hourly chart of the GBPCHF pair, which is acting as a resistance.
  • The UK Halifax House Price Index released by the HBOS posted a rise of 0.6% in May 2016, more than the forecast.

Technical Analysis

The British Pound struggle continued this past week as it traded lower vs the US Dollar, Euro and the Swiss Franc. Brexit fears are in play and pushing the currency lower. If we look at the GBPCHF pair, then it is in a downtrend, and following a bearish trend line formed on the hourly chart.

GBPCHF

Moreover, the pair is also below the 100 and 50 hourly simple moving average, which are acting as a hurdle for more gains in the near term.

As long as the trend line resistance is intact, the pair may continue to decline.

UK Halifax House Price Index

Today in the UK, the Halifax House Price Index, which is the UK”s longest running monthly house price series presents house prices and property price movements on a like-for-like basis was released by the HBOS. The market was expecting an increase of 0.3% in the prices in May 2016. However, the result was positive, as there was an increase of 0.6%.

Moreover, the report added that “House prices in the three months to May were 1.4% higher than in the preceding three months (December 2015-February 2016). This was slightly below April’s 1.5% and was the lowest since November 2015 (1.4%). “

The report was positive, and lifted the GBPCHF pair, but the trend line resistance prevented the upside move.

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