After the UK economy posted an unexpected contraction in the second-quarter and the labor market surprised to the upside, forex traders will get key retail sales data this morning. Economists predict a contraction, but with the British Pound in extreme oversold conditions, will retail sales ignite a counter-trend short-covering rally? Momentum in the GBPCHF has been building up as this currency pair reached the upper band of its horizontal support area, will this level hold and can bulls force a march to the upside? Follow the PaxForex Daily Fundamental Analysis where you will grow your account balance trade-by-trade!

The Swiss Franc has attracted plenty of capital as forex traders take advantage of the safe haven status of the Swiss currency. This has now started to impact the Swiss export oriented economy and with other central banks cutting interest rates in order to remain competitive, analysts now expected the Swiss National Bank to follow suit. Will this cause a sell-off in the Swiss Franc or will it maintain its bullish bias as the global economy is heading towards a recession? The SNB is also known to interfere directly in the forex market, will it do so in order to weaken its currency and what does this mean for the GBPCHF? Today’s fundamental analysis will take a look at the upside potential for a short-covering rally as well as the downside risk of this currency pair.