FxWirePro: GBP/CHF breaks strong trendline support at 1.2980, bias lower

Refer GBP/CHF chart on Trading View

• GBP/CHF breaks strong trendline support at 1.2980, further weakness on cards.
   
• Momentum studies bearish, RSI below 50 levels and point south. DMI supports downside. We see -ve DMI dominance and ADX is rising.
   
• Rising odds of a hard Brexit keeping the pound under pressure. Further dampening sentiment around the pound are comments from UK International Trade minister Fox.
   
• Fox said that a no-deal Brexit has a 60% chance of happening, increasing concerns of a major disruption to the economy.
   
• GBP/CHF eyes 50% Fib at 1.2820. Breach there eyes major trendline support at 1.27 levels.
   
• On the flipside, 21-EMA is strong resistance. Decisive break above could see upside till daily cloud.

Support levels - 1.2820 (50% Fib), 1.27 (trendline), 1.2575 (61.8% Fib)

Resistance levels - 1.2958 (5-DMA), 1.3033 (21-EMA), 1.3064 (38.2% Fib)

Recommendation: Stay short on upticks, target 1.2820/ 1.27

FxWirePro Currency Strength Index: FxWirePro's Hourly GBP Spot Index was at -101.099 (Bearish), while Hourly CHF Spot Index was at 72.428 (Neutral) at 1200 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.