Sterling could be in for additional volatility as the U.K. jobs figures are due and might set the tone for BOE policy expectations. If the actual figures beat expectations, however, it could spark a strong bounce for pound pairs as this would likely dampen BOE rate cut hopes. The pair is floating around 38.2% Fibonacci retracement level, which coincides with an area of interest, weekly pivot level, and the 100 SMA dynamic inflection point. In my opinion, we may not see a further deep or retracement around 50-61.80% Fibonacci if we have a surprise better than the expected report where consensus is better then what it is hoped by the economist. The faster-moving MA is above the 200 SMA to indicate that support is more likely to hold than to break at the moment and also, stochastic is indicating oversold conditions or exhaustion among sellers, so buyers might take over soon but as we said everything depends on the upcoming outlook from the UK and global risk sentiment. The average daily volatility of GBP/CHF is around 82 pips a day so decide wisely entries and exit levels after knowing the reports. Stay careful friends!
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A slight miss in wages data but the unemployment rate continues to reaffirm that labour market conditions remain tight in the UK economy. The pound should not see much reaction in the aftermath of the data here as there are bigger fish to fry in the coming days.
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UK finance minister Sunak confirms that budget will be on 11 March
@transparent-fx, hey buddy nice sentiment analysis and GBPCHF pullback/Fibo retracement trade plan. Our idea was close enough as I been assuming for a break lower below the area of interest, weekly pivot point and obviously our Fibonacci retracement level 38.20% which was in line with the other two key levels. A slight miss in wages data but the unemployment rate continues to reaffirm that labor market conditions remain tight in the UK economy might have pushed the price higher with new fresh buyers being optimistic more on pound then swiss last day. It might be the reason we had no break lower from those three key levels which I mentioned above and for now, price seems to make a beautiful rebound upward from those levels in my intraday perspective which was my what-if plan "if we have a surprise better than the expected report" from the UK.