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The British pound was seen struggling recently not only against the US dollar, but also against the Swiss franc. There is a lot of selling pressure developing especially on the GBPCHF pair. There was an important release during the London session, which caused downside in the British pound. The GFK consumer confidence was released, which came in at -2, compared with the expectation of -1. The GBPCHF pair broke a critical support area, which can be seen as selling opportunity in the near term. The FX market volatility is low, and that might be the reason that there is no major move in the pair else there was a possibility of a slide.
There was a critical bullish trend line formed on the hourly chart of the GBPCHF pair, which was broken earlier. This break was very crucial, as the pair is now trading below the 100 hourly moving average as well opening the doors for more losses moving ahead. There is a chance that the pair might retest the broken trend line one more time and fail to move higher. In that situation, the pair might head lower again. The next level of buying interest can be considered around the 38.2% fib retracement level of the last leg from the 1.4942 low to 1.5229 high. This is where the 200 hourly moving average is floating around.
On the upside, the 100 hourly MA might continue to act as a resistance. Any further strength might take the pair towards the broken trend line where sellers might appear again.
Overall, one might consider selling rallies around the broken trend line as long as the pair is trading below the last high.
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Posted By IKOFX Technical Team: Online Forex Broker
Website – – http://ikofx.com
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