FxWirePro: GBP/CHF breaks into daily cloud, eyes 38.2% Fib at 1.30, stay long on dips

GBP/CHF chart on Trading View used for analysis

• GBP/CHF trades 0.39% higher on the day at 1.2841 at the time of writing.
   
• Markit's UK Manufacturing PMI came out at 53.8, above expectations at 52.5, supporting the pound.
   
• The pair has broken into daily cloud and has edged above 23.6% Fib at 1.2788.
   
• Technical studies support upside in the pair. RSI and Stochs are biased higher. We see -ve DMI crossover on -ve DMI and MACD also supports uptrend.
   
• Next immediate resistance lies at 1.2931 (cloud top). Break out above cloud will see further upside.
   
• On the flip side, 55-EMA is strong support at 1.2774 and we see weakness on break below.

Support levels - 1.28, 1.2774 (55-EMA), 1.2727 (50-DMA),     1.2696 (21-EMA)

Resistance levels - 1.2931 (cloud top), 1.2953 (100-DMA), 1.2992 (38.2% Fib)

Recommendation: Good to gp long on dips around 1.2810/20, SL: 1.2725, TP: 1.29/ 1.2930/ 1.2950/ 1.2990

FxWirePro Currency Strength Index: FxWirePro's Hourly GBP Spot Index was at 0.924478 (Neutral), while Hourly CHF Spot Index was at -144.878 (Bearish) at 0930 GMT. 

For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.