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Market Analysis

Home » Technical Analysis » Daily » GBPCHF To Break Higher?

GBPCHF To Break Higher?

Posted by FXTimes in Daily - April 20th, 2016 1:26 pm GMT

US Dollar USDCHF

Key Points

  • British Pound gained traction vs the Swiss Franc recently, and may be setting up for a break higher in the short term.
  • There is a contracting triangle pattern formed on the hourly chart of the GBPCHF pair, which may be broken moving ahead to clear the way for more upsides.
  • UK Claimant Change released by the National Statistics posted a disappointing reading of 6.7K in March 2016, compared with the forecast of -10.0K.
  • The UK unemployment rate remained unchanged at 5.1%.

Technical Analysis

The British Pound was seen consolidating gains vs the Swiss franc recently, and currently it is forming a contracting triangle pattern formed on the hourly chart. If the GBPCHF pair closes above the triangle resistance trend line, then more gains are likely.

GBPCHF

On the downside, the triangle support trend line holds a lot of importance as it is positioned with the 50 hourly simple moving average.

One may consider buying with a break above the resistance area eyeing a move above the 1.3880 level.

UK Employment Report

Today, the UK saw a major release, as the Claimant Change, which presents the number of unemployment people in the UK was published by the National Statistics. The forecast was lined up for a reading of -10.0K in March 2016, but the result was disappointing, as the Claimant Change was +6.7K.

Moreover, the UK unemployment rate remained unchanged at 5.1%. The report stated that “Between September to November 2015 and the 3 months to February 2016, the number of people in work and the number of unemployed people increased, but the number of people not working and not seeking or available to work (economically inactive) fell.”

In short, the outcome was not encouraging, but the British Pound was not affected and looks poised for an upside break vs the Swiss Franc.

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