- British Pound traded higher against the Swiss Franc, and looks set for more gains.
- There was a bearish trend line formed on the hourly chart of GBPCHF, which was cleared by buyers.
- Today, the UK Gross Domestic Product was released by the National Statistics, which helped the GBPCHF pair to gain traction.
- UK Gross Domestic Product posted a rise of 0.5% in the fourth quarter of 2015, compared to the preceding quarter of 2015.
The GBPCHF pair after trading near 1.4430 found support and started moving back higher. There was a bearish trend line formed on the hourly chart, which was breached during the upside drift. The pair even formed a nice bullish candle pattern, suggesting more gains.
The pair is above the 100 hourly simple moving average, and if there is a break above the 50 MA, then the pair could test 1.4600 in the short term.
On the downside, the 100 hourly simple moving average may continue to act as a support for the GBPCHF pair.
In the UK, the Gross Domestic Product, i.e. the sum of goods and services produced within the economy less the value of goods and services was released by the National Statistics. The expectation was +0.5% in the fourth quarter of 2015, compared to the preceding quarter of 2015, and the outcome was as forecasted.
The report added that “Output increased in 2 of the main industrial groupings within the economy in Quarter 4 (Oct to Dec) 2015. Services increased by 0.7% and agriculture increased by 0.6%. In contrast, production decreased by 0.2%, while construction output decreased by 0.1%”.
Overall, the report helped the GBPCHF pair to gain ground, and if buyers continue to outpace sellers, then more upsides are possible.