GBP/CHF chart on Trading View used for analysis
- GBP/CHF has edged lower from 5-week highs at 1.2742, bias bullish.
- The pound remains buoyed ahead of UK labor market report.
- Analysts expect the number of people seeking jobless benefits increased by 10.0k in the three months to August, compared to a gain of 6.2k seen in the three months to July.
- The ILO unemployment rate is expected to hold steady at 4.0% during the period. Average earnings are expected to tick upwards from 2.7% to 2.8%.
- Upbeat growth in the UK’s wages could further the ongoing bullish momentum seen around the pound.
- Technical indicators are turning bullish on the intraday charts. Stochs and RSI have rolled over from oversold levels.
- The pair has broken above 21-EMA and is poised for further upside.
Support levels - 1.2645 (21-EMA), 1.2592 (5-DMA), 1.25
Resistance levels - 1.2788 (23.6% Fib), 1.2848 (50-DMA), 1.30 (38.2% Fib/)
Recommendation: Good to go long on dips, SL: 1.2590, TP: 1.2785/ 1.2850/ 1.30
FxWirePro Currency Strength Index: FxWirePro's Hourly GBP Spot Index was at 110.283 (Bullish), while Hourly CHF Spot Index was at -149.457 (Bearish) at 0730 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
