GBP/CHF Buyers Gain Momentum Ahead of Key Economic Reports

02/04/2025

Market Overview

The GBP/CHF pair has been range-bound in recent sessions, reflecting indecision among traders as they await critical economic data from both the UK and Switzerland. Market participants are positioning cautiously as they anticipate data releases that could dictate near-term direction.

Technical Analysis

On the three-hour chart, GBP/CHF has shown signs of breaking out from its neutral range following a prolonged period of low volatility. After forming a squeeze pattern on the Bollinger Bands, buyers have managed to push the price above the immediate resistance at 1.14317. A successful breakout and consolidation above this level would establish a bullish trend, with subsequent targets at 1.14477, 1.14682, and 1.14907.

Momentum indicators support a bullish outlook. The RSI has moved above the 50 level, reflecting growing buying interest, while the MACD histogram is expanding in positive territory, indicating increasing upward momentum. However, if buyers fail to maintain control above 1.14317, the pair could slide back towards 1.14092 and 1.13727, maintaining the prior neutral structure.

Key Technical Levels

Resistances: 1.14477, 1.14682, 1.14907
Supports: 1.14317, 1.14092, 1.13727

Fundamental Drivers

Traders are focusing on two major data sets: UK PMI readings and Swiss inflation figures. Analysts expect the UK PMI to remain in the expansion zone, potentially exceeding the previous reading, which could support the Pound. Conversely, Swiss inflation is projected to decrease from 0.6% to 0.1% month-on-month, fueling speculation that the Swiss National Bank may extend its accommodative stance. A lower-than-expected inflation figure could weaken the Franc, adding to GBP/CHF’s upward bias.