- British Pound collapsed below an important support area against the Swiss Franc and looks set for more losses.
- A major support trend line was breached to set the tone for a decline in the short term.
- UK Industrial Production was published by the National Statistics today posted a decrease of 0.2% in September 2015, compared to the preceding month.
- UK manufacturing production was on the other hand gained by 0.8%, compared with the forecast of 0.2%.
The GBPCHF pair traded as high as 1.5350 where it found sellers and started to move lower. The biggest setback was the fact that the pair fell below major support trend line formed on the 4-hours chart. Moreover, the pair also broke the 50 simple moving average (4H).
It looks like the pair is heading towards the 100 SMA (4H), which is positioned around the 50% Fib level of the last wave from the 1.4702 low to 1.5354 high.
One might consider selling rallies if the GBPCHF pair corrects in two waves higher moving ahead.
UK Industrial and Manufacturing Production
Earlier today the UK saw a couple of major economic releases like the Industrial and Manufacturing Production. The Industrial Production was reported by the National Statistics. The forecast was of a 0.1% decline in September 2015, compared with the preceding month. However, the result was on the disappointing side, as the Production decreased by 0.2%. Looking at the yearly change, there was a rise of 1.1%, which was also on the lower side compared to the forecast of 1.3%.
The UK Manufacturing report was somehow on the positive side for a change, as there was an increase of 0.8%, compared with the forecast of 0.2%.
The GBPCHF pair might continue to trade lower, as there is hardly anything for them to cheer.