- British Pound rocketed higher today, as the economic releases in the UK impressed investors.
- All major British Pound pairs like GBPUSD, GBPJPY and GBPCHF traded higher and looks set for more gains.
- UK Consumer Price Index released by the National Statistics posted a decline of 0.1% in October 2015, just as the market forecast.
- In terms of the yearly change, the Core Consumer Price Index came in at 1.1%, more than the forecast of 1%.
The British Pound performed well after the economic releases against most major currencies, including the Swiss Franc. The GBPCHF pair broke a key resistance area at 1.5360-70 and traded near 1.5400.
There is a bullish trend line formed on the hourly chart, which is likely to act as a support if the pair moves lower from the current levels. The 38.2% fib retracement level of the last move from the 1.5268 low is also sitting near the trend line to provide support.
On the upside, a break above the 1.5400 handle may call for a move towards the 1.5440 area.
Today, there were a lot of releases scheduled in the UK, including the CPI, PPI and RPI. The UK Consumer Price Index, which evaluates the price movements by the comparison between the retail prices of a representative shopping basket of goods and service was reported by the National Statistics. The market was expecting a decline of 0.1% in October 2015, compared with the preceding month. The result matched the forecast. Moreover, there were a few things, which came above the forecast and ignited a rally in the British Pound.
Like, the UK Core Consumer Price Index (YoY) and the Producer Price Index posted a better than expected reading. The GBPCHF pair spiked higher and positioned itself for more gains.
We can consider buying dips in GBPCHF pair if it corrects a few pips lower from the current levels near the 1.5360-70 area.