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A busy economic calendar did not translate to volatility during the Asian session.

Will GBP/CHF see more action with the U.K.’s final GDP release?

Before we talk about GBP/CHF’s chart, take a look at the top headlines that dominated Asian session trading:

Major Forex Pairs Price Performance from MarketMilk
Major Forex Pairs Price Performance from MarketMilk

Upcoming Potential Catalysts on the Economic Calendar:

  • Germany’s retail sales at 6:00 am GMT
  • U.K.’s current account balance at 6:00 am GMT
  • U.K.’s final GDP reading at 6:00 am GMT
  • U.K.’s Nationwide house price index at 6:00 am GMT
  • France’s preliminary CPI at 6:45 am GMT
  • Switzerland’s KOF economic barometer at 7:00 am GMT
  • ECB President Lagarde to give a speech at 7:20 am GMT
  • Germany’s unemployment rate at 7:55 am GMT
  • BOE’s Haldane to give a speech at 8:30 am GMT
  • U.S. ADP report at 12:15 pm GMT

What to Watch: GBP/CHF

GBP/CHF 4-hour Forex Chart
GBP/CHF 4-hour Forex Chart

GBP/CHF is consolidating around 1.1800, which lines up with a mid-channel, 50% Fib retracement AND a previous resistance level on the 4-hour time frame.

If the key inflection point is not enough to catch your interest, then you should also know that the pair is showing us a bullish divergence on the chart.

The U.K. is printing the final reading of its Q2 2020 GDP. Word around is that it will be revised down from -1.7% to -21.7%, which will mark the deepest recession recorded for the economy.

A worse-than-expected release would mean that the economy is already that much weaker even before Britain (likely messily) exits the EU.

Given that the GBP/CHF tends to move by around 90 pips on Wednesdays, we could see a trip to the channel support closer to 1.1700.

If the report comes in much better than expected, however, or if we see positive headlines about the ongoing Brexit negotiations, then GBP/CHF could extend its uptrend and hit 1.1900 near the 200 SMA.