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FX: GBPCHF Signaling a Rising Wedge Breakout

CPI y/y

2.4%

2.6%

2.8%

PPI Input m/m

-2.3%

-1.2%

0.1%

RPI y/y

2.9%

3.1%

3.3%

Core CPI y/y

2.0%

2.3%

2.4%

HPI y/y

2.7%

2.3%

1.9%

PPI Output m/m

-0.1%

0.2%

0.2%

These are the publications from today’s calendar. I seems that the overall inflation doesn’t look that good for Great Britain. Even though the inflation rate it is still over the Central Bank’s target, these publications had a negative impact on the British pound.

gbpchf-signaling-a-breakout-from-wedge-21.05.2013Chart: GBPCHF, H4

GBP lost in front of the Euro, the US dollar, the Japanese yen and also in front of the Swiss franc. On the GBPCHF chart we can see on 4 hour chart a big drop which has broken a symmetrical triangle on the downside. This pattern’s target is at 1.4580. If the fall will continue, the probability for this is quite high, another pattern will be activated.

From 25th of April the price has drawn a Rising Wedge. A break through the lower line of the pattern could trigger further falls which could bring the price back to 1.4410. The first to be made until this fall is a drop under the local support from 1.4670.

Great Britain pound is taking hit after hit. Both technical and fundamental analysis are looking bad and the signals are bearish for this currency.

FX: GBPCHF Signaling a Rising Wedge Breakout by
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