The British pound is trading a touch lower against most of its counterparts, including the Swiss franc. It is very likely that the GBPCHF pair might continue trading lower in the short term. There is a wedge pattern formed on the 4 hour chart for the pair. If the pair trades a bit higher from the current levels and closer to the 1.5400 level, then we can jump into a sell trade.
Alternatively, if the pair moves lower, then there is a clear range support area around the 1.5345 level. The mentioned level also coincides with a bullish trend line. So, if the pair breaks the trend line and support area, closes below it, then we can enter into a sell trade.
Initial target should be around the 1.5260 level, and final target could be around the 1.5210 level. Stop should be above the last high in the first scenario, and above the broken support area in the second scenario.
Reviewing yesterday’s events and trades
Yesterday, the US services PMI and pending home sales data was published in the NY session. The US services PMI remained at 61.0, beating the expectation of a decline. Moreover, the US pending home sales declined by 1.1%, missing the expectation of a 0.5% rise. The market mostly traded in a range and there was no weakness noted in the US dollar. On the other hand, it has been seen trading a touch higher earlier during the Asian session.
Fundamental Outlook for the day
Today, the US Case-Shiller index prices and consumer confidence data will be published during the NY session. The US consumer confidence is expected to rise by 0.1 points from 85.2 to 85.3. Let us see how the US dollar behaves after the release. Moreover, during the next Asian session, the Japanese industrial production data will be released, which is expected to decline by 1.2%. If the outcome comes better than expected, then the Japanese yen might gain some ground in the short term.
This analysis is taken from today’s Daily Market Forecast, which also includes trade opportunities on: EURJPY, GBPJPY, AUDUSD, USDCAD, NZDUSD and EURNZD.
Get it HERE: Vladimir’s Markets Forecast
Trade safe friends. Happy trading!
