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10 Dec 2015
GBP/CHF: Above hourly 50-MA after SNB rate decision
FXStreet (Mumbai) - The GBP/CHF pair trades above the hourly 50-MA located at 1.4928 after the Swiss National Bank (SNB) left the rate unchanged at -0.75%.
Struggles to extend gains
The pair did recover from the low 1.4912 post-SNB rate decision, but is having a tough time extending recovery above the hourly 50-MA. The policy statement reiterated that CHF is still significantly overvalued and should continue to weaken over time.
The traders now await the UK trade balance figures, which will be followed by the Bank of England rate decision.
GBP/CHF Technical Levels
At 1.4930, the immediate support is seen at the hourly 50-MA at 1.4928, under which the pair may drop to 1.4873 (23.6% of 1.2611-1.5572). On the other hand, resistance is seen at 1.50 -1.5041 (100-DMA), above which the gains could be extended to 1.5095 (5-DMA).
Struggles to extend gains
The pair did recover from the low 1.4912 post-SNB rate decision, but is having a tough time extending recovery above the hourly 50-MA. The policy statement reiterated that CHF is still significantly overvalued and should continue to weaken over time.
The traders now await the UK trade balance figures, which will be followed by the Bank of England rate decision.
GBP/CHF Technical Levels
At 1.4930, the immediate support is seen at the hourly 50-MA at 1.4928, under which the pair may drop to 1.4873 (23.6% of 1.2611-1.5572). On the other hand, resistance is seen at 1.50 -1.5041 (100-DMA), above which the gains could be extended to 1.5095 (5-DMA).