- British Pound found no reason recently to trade higher against most major currencies.
- In fact, it continued to decline against most major currencies, including the US Dollar and the Swiss Franc.
- UK Claimant Change released by the National Statistics posted a reading of -4.3K, better than the forecast of 2.5K in December 2015.
- UK ILO Unemployment Rate was also positive, as there was a decrease from the last rate of 5.2% to 5.1%.
The GBPCHF pair recently traded lower and tested the 1.4120 support area where buyers defended the downside. There is a bearish trend line formed on the hourly chart, which is acting as a catalyst for a downside move. The same trend line is also coinciding with the 50 hourly simple moving average.
There is also a resistance forming near 1.4230, which is a pivot area. A break above it could take the pair towards the highlighted trend line resistance area.
On the downside, the 1.4120-30 area can be seen as a support.
UK Employment Report
Today, there was a monster release in the UK, as the Claimant Change, which presents the number of unemployment people was published by the National Statistics. The forecast was lined up for a change of 2.5K in December 2015. However, the outcome was above the forecast, as the change was -4.3K. There was another positive, as the UK ILO Unemployment Rate decreased from the last rate of 5.2% to 5.1%.
Overall, the report was positive, but there was hardly any reaction from the British Pound bulls, as the GBPUSD and GBPCHF corrected only a few pips higher.
Overall, selling rallies in the GBPCHF pair is preferred as long as it remains below the highlighted trend line and resistance area.