FxWirePro: GBP/CHF grinds lower after 'Death Cross' formation, next bear target at 61.8% Fib

Refer GBP/CHF chart on Trading View

• Brexit woes show little sign of dissipating anytime soon, GBP to remain under pressure.
   
• Growing concerns regarding the UK's ability to avert a hard Brexit weigh heavily.
   
• GBP/CHF is extending grind lower. 'Death Cross' formation on daily charts reinforces weakness.
   
• Momentum with the bears. Next bear target lies at 61.8% Fib at 1.2845 ahead of 1.2745 (Oct 6 low).
   
• Of relevance on the data front is the reading for UK Q4 GDP data that will come on Friday.
   
• Upbeat reading could lend the pound some much-needed demand which is otherwise on the decline due to the political uncertainty. 
   
• On the flipside, 21-EMA is strong resistance at 1.3022. Decisive break above could see upside till daily cloud.

Support levels - 1.2845 (61.8% Fib), 1.2745 (Oct 6 low), 1.2570 (78.6% Fib)

Resistance levels - 1.2942 (5-DMA), 1.3022 (21-EMA), 1.3101 (50-DMA)

Recommendation: Stay short on upticks, target 1.2845/ 1.2745

FxWirePro Currency Strength Index: FxWirePro's Hourly GBP Spot Index was at -64.6408 (Neutral), while Hourly CHF Spot Index was at 30.9837 (Neutral) at 0715 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.