Forex Market: GBP/CHF daily forecast

During yesterday’s trading session GBP/CHF traded within the range of 1.5279-1.5361 and closed at 1.5348, gaining 0.36% for the day.

At 6:13 GMT today GBP/CHF was gaining 0.02% for the day to trade at 1.5352. The pair touched a daily high at 1.5359 at 6:00 GMT, breaching the first key weekly resistance.

Fundamental view

United Kingdom

A survey by Halifax Bank of Scotland (HBOS), the largest mortgage lender in the United Kingdom, may show that home values rose at an annualized pace of 9.6% last month, according to preliminary estimates. In June prices of British homes, purchased with loans from the bank, climbed 8.8%. In monthly terms, prices probably rose 0.4% in July, following an unexpected 0.6% drop in June. A higher than projected rate of increase would be considered as a bullish signal for the sterling. The official values will be released at 7:00 GMT.

At the same time, annualized industrial output in the United Kingdom probably expanded 1.6% in June, following another 2.3% increase during the preceding month. In monthly terms, industrial production probably increased 0.6% in June, following an unexpected 0.7% slump in the previous month., that was the biggest since August 2013. The index presents the change in the total inflation-adjusted value of production in sectors such as manufacturing, mining and energetics.

In addition, UK’s annualized manufacturing production, a short-term indicator which accounts for almost 80% of nation’s industrial output, probably expanded 2.1% in June. In May manufacturing output rose at an annualized pace of 3.7%. In monthly terms, production probably increased 0.6% during last month. As it is a key component of country’s Gross Domestic Product, in case manufacturing production expanded more than projected, this would have a bullish effect on the sterling.

The Office for National Statistics (ONS) will release the official figures at 8:30 GMT.

Switzerland

The annualized index of consumer prices (CPI) in Switzerland probably was flat in July, unchanged from Junes reading. In monthly terms, consumer prices probably declined 0.4% last month, following an unexpected 0.1% drop in June. In case the CPI declined less than anticipated, this would have a bullish effect on the franc. The official report is to be released at 7:15 GMT.

Technical analysis

According to Binary Tribune’s daily analysis, the central pivot point for the pair is at 1.5330. In case GBP/CHF manages to breach the first resistance level at 1.5380, it will probably continue up to test 1.5411. In case the second key resistance is broken, the pair will probably attempt to advance to 1.5462.

If GBP/CHF manages to breach the first key support at 1.5298, it will probably continue to slide and test 1.5247. With this second key support broken, the movement to the downside will probably continue to 1.5216.

In weekly terms, the central pivot point is at 1.5286. The three key resistance levels are as follows: R1 – 1.5346, R2 – 1.5451, R3 – 1.5511. The three key support levels are: S1 – 1.5181, S2 – 1.5121, S3 – 1.5016.