- British Pound was crushed today against most major currencies including the Swiss Franc.
- There is a major barrier on the upside formed for the GBPCHF pair, acting as a resistance.
- In the UK, the Claimant Change released by the National Statistics posted a reading of 3.9K for November 2015, compared with the forecast of 1.5K.
- UK ILO Unemployment Rate was positive as it dropped from the last 5.3% to 5.2%.
The GBPCHF pair struggled throughout this week and every time it managed to trade higher, sellers appeared to defend the upside. There is a major trend line on the hourly chart, which stalled gains on many occasions. It might continue to act as a barrier and prevent gains.
Moreover, the pair is below the 100 and 50 simple moving average on the hourly chart, which is also a bearish sign.
On the downside, an important support area is formed near 1.4829. A break below it can ignite more losses in the short term.
UK Employment Report
Today, there were a few major releases lined up in the UK. The Claimant Change, which presents the number of unemployment people in the UK was reported by the National Statistics. The forecast was of a change of 1.5K for November 2015. However, the outcome missed the mark and came in at 3.9K. On the other hand, the good part was the fact that the UK ILO Unemployment Rate dropped from the last 5.3% to 5.2%.
The report stated that “there were 31.30 million people in work, 207,000 more than for May to July 2015 and 505,000 more than for a year earlier. There were 22.88 million people working full-time, 338,000 more than for a year earlier. There were 8.42 million people working part-time, 167,000 more than for a year earlier”.
Overall, the report was mixed, and gave a reason to sellers to sustain momentum. Let us see how long the GBPCHF can hold the ground.