- British Pound after making an attempt to trade higher failed and moved lower against the Swiss Franc.
- 4300-20 level proved as a major hurdle for the GBPCHF pair and pushed it down.
- A couple of support trend lines were breached during the downside drift, calling for more losses.
- UK Consumer Price Index released by the National Statistics posted a decrease of 0.8% in December 2015, which was more than the forecast of -0.7%.
The British Pound traded twice towards 1.4300-20, but failed both times to gain traction against the Swiss Franc. Finally, there was a downside move, as the GBPCHF pair broke a couple of support trend lines on the hourly chart.
The pair is currently trading near the 50 hourly simple moving average, but if sellers manage to break it, then a move towards the 100 MA is possible.
On the upside, the broken trend lines may now act as a resistance, followed by the 1.4320 level.
Today, there was a major release in the UK, as the Consumer Price Index, which is a measure of price movements by the comparison between the retail prices of a representative shopping basket of goods and services was reported by the National Statistics. The forecast was slated for a decrease of 0.7% in December 2015, compared with the previous month.
However, the outcome was disappointing, as the UK CPI declined by 0.8% in Dec 2015. The report added that “Consumer Prices Index (CPI) rose by 0.3% in the year to January 2016, compared with a 0.2% rise in the year to December 2015”.
Overall, the British Pound is under a bearish pressure, which may increase if sellers gain traction.