GBP/CHF Likely Break the Resistance Near 1.1900 If Swiss KOF Economic Barometer Declines Substantially
Last Updated on September 29, 2020
GBP/CHF Forecast & Technical Analysis
Switzerland – KOF Economic Barometer
On Wednesday, at GMT 7:00 a.m., the KOF Economic Research Agency will release its economic barometer index. It measures the changes in the level of a composite index.
The KOF develops this composite index by analyzing 219 different economic indicators. Hence, UK forex brokers consider this to be an important fundamental indicator regarding the Swiss economy.
Last month, the KOF economic barometer index reading came out at 110.2. Analysts are expecting it to come out at a much lower reading, at 105.6.
United Kingdom – Final Manufacturing PMI
On Thursday, at GMT 8:30 a.m., the Markit will release the United Kingdom’s final manufacturing purchasing managers’ index (PMI) figure. It measures the level of a diffusion index by surveying around 600 purchasing managers in the country.
The PMI is calculated based on survey questions covering employment, production, and price levels. It also takes new order situations as well as inventory conditions under consideration. Businesses are the first to react to changing economic climate. Hence, ATFX broker considers this data to be a leading indicator of the overall economic health of the country.
Last month, the UK’s final manufacturing PMI came out at 54.3. The forecast for this month is set at 54.3 as well.
Earlier in September, the GBP/CHF broke below the intermediate uptrend line. Furthermore, it fell below the support near 1.1900. However, after reaching the support near 1.6500, the GBP/CHF started a bullish retracement. Earlier today, it reached the pivot zone near 1.1900. Currently, it is testing this major resistance level.
The UK’s Final Manufacturing PMI will likely stay the same as last month. On the other hand, analysts are expecting the Swiss KOF Economic Barometer to come down from 110.2 to 105.6. We believe it would set a bullish fundamental outlook for the GBP/CHF this week. Therefore, if the GBP/CHF closes above the resistance near 1.1900, it would likely attract additional bullish momentum in the market.
Hence, Forex traders should look out for trading opportunities above this major resistance level around 1.1900.
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