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During Friday’s trading session GBP/CHF traded within the range of 1.4985-1.5041 and closed at 1.5000, losing 0.07% for the day and 0.50% for the week.

Fundamental view

United Kingdom

Activity in United Kingdom’s sector of manufacturing probably slowed down in May, with the corresponding PMI coming in at a reading of 57.0, according to the median forecast of experts, down from 57.3 in April. The index is based on a survey, encompassing managers of companies, that operate in sectors such as manufacturing, mining, utilities. They are asked about their estimate in regard to current business conditions in the sector in terms of new orders, output, employment, demand in the future. Values above the key level of 50.0 signify that activity in the sector has expanded. Higher than projected PMI readings would certainly heighten the appeal of the sterling. The Chartered Institute of Purchasing and Supply (CIPS) is expected to announce the official reading at 8:30 GMT on Monday (June 2nd).

The number of mortgage approvals in the United Kingdom probably dropped to 64 750 in April, according to experts expectations, from 67 135 during the prior month. Mortgage approvals are considered as a leading indicator, reflecting the health of countrys housing market. in case the number of mortgage approvals increases more than anticipated, this implies housing sector strength and a positive impulse for overall economy. Therefore, the national currency would also be supported. Bank of England will release the official numbers at 8:30 GMT on Monday.

Switzerland

Activity in Switzerlands manufacturing sector probably slowed down during May. The SVME Manufacturing Purchasing Managers Index (PMI) probably fell to a reading of 55.0 last month, according to the median estimates, from 55.8 in April. This indicator provides clues over growth of production in the country. Values above 50.0 are indicative of expansion in the sector. Therefore, higher than expected PMI readings would support the franc. The SVME (Schweizerischer Verband für Materialwirtschaft und Einkauf) in cooperation with Credit Suisse will release the official data at 7:30 GMT on Monday.

Technical view

gbp-chf

According to Binary Tribune’s daily analysis, in case GBP/CHF manages to breach the first resistance level at 1.5032, it will probably continue up to test 1.5065. In case the second key resistance is broken, the pair will probably attempt to advance to 1.5088.

If GBP/CHF manages to breach the first key support at 1.4976, it will probably continue to slide and test 1.4953. With this second key support broken, the movement to the downside will probably continue to 1.4920.

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