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The British pound was seen trading lower against the US dollar, but relatively it stayed above an important support against the Swiss franc. However, it was seen struggling earlier during the Asian session, which might push the pair lower in the near term. There is a major release lined up in the UK, as the consumer inflation expectations will be released by the Bank of England. This particular event might cause a lot of moves in the British pound. We need to see how the GBPCHF pair trades around the release and whether sellers could manage to take it lower moving ahead or not.
There is a bullish trend line formed on the hourly chart of the GBPCHF pair, which provided support to the pair recently. However, there are a few worrying signs as the pair is now trading below the 100 hourly moving average, which might act as a hurdle for buyers in the near term. There is one positive side which is the fact that sellers are struggling to break the 200 hourly moving average. Currently, the GBPCHF pair is trading around the 61.8% fib retracement level of the last leg from the 1.5071 low to 1.5359 high, which is acting as a monster support for the pair. A break below the mentioned trend line and support area could take the pair towards the 76.4% fib level.
On the upside, initial resistance is around the 100 hourly MA. Only a close above the same could lift the sentiment in the favour of buyers.
Overall, one might consider buying dips as long as the pair is trading above the highlighted bullish trend line.
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Posted By IKOFX Technical Team: Online Forex Broker
Website – http://ikofx.com
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