GBPCHF Stands Out with Solid Weekly Gains

The GBPCHF currency pair has embarked on a noteworthy rally, displaying back-to-back weeks of gains and poised for a third. The primary driver behind this surge lies in the steadfast resilience of the British Pound.  

Recent economic indicators unveiled the robust standing of the U.K.’s economy, with the November 2023 GDP surpassing expectations at 0.3%. The S&P Global Composite PMI for December underscored this strength, rising to 52.1, primarily driven by a robust services sector. This ascent above the pivotal 50 mark signifies expansive progress, a testament to the U.K.’s economic vigour, consequently bolstering the British Pound. The positive momentum extends to the labour market (a key driver of inflation), witnessing a significant employment change of 73K, surpassing forecasts of 50K. This not only hints at potential inflationary pressures fuelled by a resilient labour market but also enhances the narrative of prolonged higher interest rates in the U.K., potentially boosting the British Pound. 


The GBPCHF currency pair has embarked on a robust short-term uptrend, recording an impressive ten consecutive days of gains.  

Initially descending from a resistance level at 1.10854, the pair found support at 1.06358 amid oversold Relative Strength Index (RSI) conditions. A subsequent retracement brought the pair within striking distance of the critical 61.80% Fibonacci Retracement Golden Ratio.  

A breakthrough above this golden ratio could signal further upside momentum, potentially paving the way for a retest of the 1.10854 resistance level. However, caution is warranted as the overbought RSI conditions suggest a possible reversal, particularly if the Golden Ratio acts as an intermediate resistance level. In such a scenario, the 50% level may serve as a short-term downside point of interest.  


The GBPCHF stands out with solid weekly gains, propelled by the British Pound’s resilience amid robust economic indicators. The currency pair’s technical landscape, marked by a ten-day uptrend, reveals potential for further gains, with the critical 61.80% Fibonacci Retracement Golden Ratio acting as a key level. A breakthrough could pave the way for a retest of the 1.10854 resistance level, although caution is advised, considering overbought conditions and the potential for a reversal. 

Sources: Office for National Statistics, S&P Global, Reuters, TradingView 

Piece Written By Nkosilathi Dube, Trive Financial Market Analyst 

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