19 Nov 2015
GBP/CHF eases-off fresh yearly highs, UK data eyed
FXStreet (Mumbai) - The GBP/CHF cross extends its bullish momentum and surpasses pre-SNB peg removal highs, only to ease slightly from fresh yearly highs to 1.5550 levels, where it now trades.
GBP/CHF upside momentum fizzles near daily R1
Currently, the GBP/CHF pair trades 0.14% higher at 1.5551, retreating from fresh multi-month highs struck at 1.5570 levels. The major met fresh supply at higher levels and trimmed gains as markets locked-in profits on their long GBP after GBP/USD failed near 1.53 handle.
Moreover, expectations of a drop in the UK retail sales last month also weighs on sterling across the board. The UK retail sales are expected to drop 0.1% m/m in Oct compared to 1.9% growth reported in Sept and rise 4.6% y/y following a 6.5% gain booked previously.
Adding to the renewed weakness in GBP/CHF, the Swiss franc remains on the bids versus the USD, boosted by the widening Swiss trade surplus. The trade surplus rose to CHF4.16 billion in Oct, against an upwardly revised CHF3.25 billion seen in Sept.
Meanwhile, focus now remains on the UK retail sales due out in less than an hour for further momentum on the cross.
GBP/CHF Technical Levels
To the upside, the next resistance is located 1.5570/83 (Today’s high/ daily R1) levels and above which it could extend gains to 1.5638 (daily R2). To the downside, immediate support might be located at 1.5514 (today’s low) and below that at 1.5439 (5-DMA).
GBP/CHF upside momentum fizzles near daily R1
Currently, the GBP/CHF pair trades 0.14% higher at 1.5551, retreating from fresh multi-month highs struck at 1.5570 levels. The major met fresh supply at higher levels and trimmed gains as markets locked-in profits on their long GBP after GBP/USD failed near 1.53 handle.
Moreover, expectations of a drop in the UK retail sales last month also weighs on sterling across the board. The UK retail sales are expected to drop 0.1% m/m in Oct compared to 1.9% growth reported in Sept and rise 4.6% y/y following a 6.5% gain booked previously.
Adding to the renewed weakness in GBP/CHF, the Swiss franc remains on the bids versus the USD, boosted by the widening Swiss trade surplus. The trade surplus rose to CHF4.16 billion in Oct, against an upwardly revised CHF3.25 billion seen in Sept.
Meanwhile, focus now remains on the UK retail sales due out in less than an hour for further momentum on the cross.
GBP/CHF Technical Levels
To the upside, the next resistance is located 1.5570/83 (Today’s high/ daily R1) levels and above which it could extend gains to 1.5638 (daily R2). To the downside, immediate support might be located at 1.5514 (today’s low) and below that at 1.5439 (5-DMA).