Key Points
- The British Pound recovered well from the 1.2298 low against the Swiss Franc.
- The GBPCHF pair faces a monster resistance near 1.2350, and two bearish trend lines formed on the hourly chart.
- Today in Switzerland, the Unemployment Rate for Feb 2017 was released by the State Secretariat for Economic Affairs (SECO).
- The result was around the forecast, as the Unemployment Rate remained unchanged from 3.3% in Feb 2017.
GBPCHF Technical Analysis
The British Pound was in a consistent downtrend against the Swiss Franc, as it traded as low as 1.2298 from where it recovered. The GBPCHF pair moved above the 38.2% Fib retracement level of the last decline from 1.2405 high to 1.2298 low, but faces a monster resistance.
On the upside, there is a huge resistance formed near 1.2350 with two bearish trend lines on the hourly chart. It also coincides with the 50% Fib retracement level of the last decline from 1.2405 high to 1.2298 low.
Moreover, the 1.2350 resistance also overlap with the 21 hourly simple moving average. So, it won’t be easy for the GBPCHF pair to break the 1.2350 resistance in the near term.
Switzerland Unemployment Rate
Today, the Swiss Unemployment Rate for Feb 2017 was released by the State Secretariat for Economic Affairs (SECO). The market was expecting the number of unemployed workers divided by the total civilian labor force to be at 3.3% in Feb 2017, unchanged from the last reading.
The outcome was around the forecast, as the Unemployment Rate remained unchanged from 3.3% in Feb 2017. The report stated that “Youth unemployment (15 to 24 year olds) decreased by 674 persons (-3.4%) to 19’108. Compared to the previous year, this corresponds to a decrease of 1’383 persons (-6.7%)”.
Overall, the British Pound attempt may fail to move above 1.2350, and GBPCHF could trade back lower in the short term.
