Forex Market: GBP/CHF daily forecast

During yesterday’s trading session GBP/CHF traded within the range of 1.5192-1.5290 and closed at 1.5236.

At 6:16 GMT today GBP/CHF was losing 0.03% for the day to trade at 1.5218. The pair touched a daily low at 1.5214 at 6:14 GMT.

Fundamental view

Switzerland

At 7:30 GMT the Swiss National Bank will announce its decision on interest rates. Analysts expect that the central bank will keep the benchmark rate unchanged at 0 to 0.25% at its policy meeting. The key policy rate has been maintained at this level since central bank’s meeting on August 3rd 2011, when a 0.25% cut was introduced.

United Kingdom

Retail Sales in the UK probably declined 0.5% in May, according to the median analysts’ estimate. In April retail sales rose 1.3%.

The indicator measures the change in the volume of sales made by retailers in the UK. The information is derived from a monthly survey among major retailers. Higher volumes of retail sales mean greater consumer demand, higher production and economic growth. This is the percentage change in the index from the previous month.

On year-over-year basis, retail sales probably jumped 4.3% last month, following a 6.9% gain in April, that was the biggest since 2002.

The Office for National Statistics is scheduled to release an official report at 8:30 GMT. Higher-than-expected readings will certainly heighten the appeal of the pound.

Technical view

According to Binary Tribune’s daily analysis, in case GBP/CHF manages to breach the first resistance level at 1.5287, it will probably continue up to test 1.5337. In case the second key resistance is broken, the pair will probably attempt to advance to 1.5385.

If GBP/CHF manages to breach the first key support at 1.5189, it will probably continue to slide and test 1.5141. With this second key support broken, the movement to the downside will probably continue to 1.5091.