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The British pound somehow managed to climb higher against the Swiss franc, but struggled around an important resistance zone of 1.5040-60. There were several releases lined up in the UK and Switzerland recently, which were mixed and caused a choppy price action in both the major currencies. There is also an economic release lined up during the London session today in the UK. The UK Net Borrowing report will be published by the National Statistics, which is expected to register a fall this time. Let us see whether the GBPCHF pair can manage to break higher or not in the short term after the release.

There is a confluence of trend lines formed on the hourly chart of the GBPCHF pair, which is acting as a monster hurdle for the British pound buyers. There is a bullish development, as the pair has managed to close above the 100 hourly moving average, but struggling to gain momentum. The pair is currently trading above the 38.2% fib retracement level of the last leg from the 1.4940 low to 1.5065 high. There is a chance of a spike lower towards the 50% fib level if the pair continues to struggle. Any further downside acceleration would call for more losses which could take the pair towards 1.4960 swing support area.

On the upside, a break above and close above the highlighted trend lines confluence area might be a bullish call. In that situation, the pair might challenge the 200 hourly MA.

Overall, one might consider buying with a break as long as the hourly RSI is above the 50 mark.

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Posted By IKOFX Technical Team: Online Forex Broker
Website: http://ikofx.com