Technical Bias: Bullish
Key Takeaways
• British Pound sellers struggling to keep the currency lower against the Swiss franc.
• UK unemployment data might act as a catalyst for the pound moving ahead.
• GBPCHF support seen at 1.5050 and resistance ahead at 1.5120.
The British pound traded lower against the US dollar yesterday post the UK production data release, but managed to hold the gains against the Swiss franc as sellers struggle to gain momentum.
Technical Analysis
The GBPCHF pair earlier during the week managed to break an important bearish trend line to trade higher. However, the pair failed to clear the 1.5100 barrier, and as a result trading lower. There is another bullish trend line forming on the 4 hour timeframe, which also coincides with the broken bearish trend line at 1.5050. The mentioned level is around the 50% Fibonacci retracement level of the last leg higher from the 1.4970 low to 1.5121 high. If GBPCHF sellers manage to push the pair closer to the mentioned support area, then there is a high probability that they might struggle to take the pair lower below the confluence area. A break and close below the trend line support area could expose the 61.8% fib retracement level.
On the upside, buyers might struggle around the last high of 1.5120. However, if they do manage to clear the mentioned resistance zone, then a test of the 1.5200 level is possible in the short term.
UK Employment Data
The UK Claimant Count Change data and unemployment rate will be published by the Office for National Statistics later during the London session. The forecast is slated for a fall in the unemployment rate from 6.8% to 6.7%. If this turns out true, then the British pound might trade higher against most of its counterparts, including the Swiss franc.
Overall, as long as the RSI is holding the 50 level, then the GBPCHF pair might gain traction moving ahead.
