Forex Market: GBP/CHF daily forecast

During yesterday’s trading session GBP/CHF traded within the range of 1.4970-1.5131 and closed at 1.4990.

At 6:16 GMT today GBP/CHF was losing 0.04% for the day to trade at 1.4985. The pair touched a daily low at 1.4984 at 2:40 GMT.

Fundamental view

United Kingdom

The deficit on United Kingdom’s trade balance probably widened to 8.650 billion GBP in April from a deficit figure of 8.478 billion GBP during the preceding month. This indicator is also known as visible trade balance, because it reflects the difference in value between exported and imported physical goods, without the inclusion of exported and imported services. Since UK economy is to a great extent dependent on trade, the visible trade balance is considered as a key factor, providing clues over the resilience of nation’s economic growth. In case UK trade deficit shrank more than anticipated, this would provide support to the pound. The Office for National Statistics (ONS) will publish the official figure at 8:30 GMT.

At the same time, the deficit on United Kingdom’s trade balance with countries outside the European Union probably narrowed to 3.150 billion GBP in April from a deficit of 3.190 billion GBP in the preceding month. A higher than expected deficit would have a bearish effect on nation’s currency.

Switzerland

The annualized index of consumer prices (CPI) in Switzerland probably rose 0.1% in May, after it remained flat in April. In monthly terms, consumer prices probably gained 0.2% last month, following a 0.1% advance in April. In case the CPI accelerated more than anticipated, this would have a bullish effect on the franc. The official report is to be released at 7:15 GMT.

Technical view

According to Binary Tribune’s daily analysis, in case GBP/CHF manages to breach the first resistance level at 1.5091, it will probably continue up to test 1.5191. In case the second key resistance is broken, the pair will probably attempt to advance to 1.5252.

If GBP/CHF manages to breach the first key support at 1.4930, it will probably continue to slide and test 1.4869. With this second key support broken, the movement to the downside will probably continue to 1.4769.