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Market Analysis

Home » Technical Analysis » Daily » GBPCHF – British Pound Surges Post BOE Meeting Minutes

GBPCHF – British Pound Surges Post BOE Meeting Minutes

Posted by FXTimes in Daily - May 12th, 2016 1:04 pm GMT

pound 17

Key Points

  • British Pound after facing a tough time vs the Swiss Franc managed to find bids near 1.3980.
  • There was a bearish trend line formed on the hourly chart of the GBPCHF pair, which was broken during the upside move.
  • BoE Interest Rate Decision was announced by the Bank of England in which the central bank kept the interest rates at 0.5% as expected.
  • In the US, the Initial Jobless Claims released by the US Department of Labor posted a rise from 274K to 294K.

Technical Analysis

The British Pound managed to spike after today’s BoE Interest Rate Decision and meeting minutes. The GBPCHF pair also traded higher and broke a major bearish trend line formed on the hourly chart. It also settled above the 50 hourly simple moving average.

GBPCHF

The pair looks like setting up for a correction back towards the broken trend line, which might now act as a support in the short term.

On the upside, the next stop for the GBP bulls can be around the last swing high of 1.4100.

US Initial Jobless Claims

Today in the US, the Initial Jobless Claims, which is a measure of the number of people filing first-time claims for state unemployment insurance was released by the US Department of Labor. The forecast was slated for a decline from 274K to 270K. However, the result was opposite, as there was an increase from 274K to 294K.

The report stated that the “this is the highest level for initial claims since February 28, 2015 when it was 310,000. The 4-week moving average was 268,250, an increase of 10,250 from the previous week’s unrevised average of 258,000“.

The British Pound may correct lower in the near term vs the Swiss franc, but if you are looking to buy, then keep an eye on the broken trend line and 100 hourly SMA.

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