FxWirePro: GBP/CHF pivotal at 61.8% Fib, break below will see extension of downside

Refer GBP/CHF chart on Trading View

• GBP/CHF is extending weakness for the 3rd straight week, hovers around 61.8% Fib.
   
• The Pound remains weak across the board, solid UK retail sales were unable to offset concerns about a no-deal Brexit.
   
• Brexit talks have resumed this Thursday in Brussels with the main issue being on how to prevent a hard border in the Irish Island.
   
• Technical indicators on weekly charts are heavily bearish. Price action has dipped below weekly cloud, broken below strong trendline support at 1.27.
   
• Momentum studies are highly bearish. RSI is well below 50 levels with room for further weakness.
   
• MACD supports trend lower and DMI also supports downside (-ve DMI dominance).
   
• Recovery attempts lack traction. Break below 61.8% Fib will see further weakness till 1.2227 (78.6% Fib).

Support levels - 1.2575 (61.8% Fib), 1.2442 (Aug 2016 low), 1.2227 (78.6% Fib) 

Resistance levels - 1.27 (trendline support turned resistance), 1.2820 (50% Fib), 1.2840 (21-EMA)

Recommendation: Watchout for break below 61.8% Fib to go short, SL: 1.27, TP: 1.2440/ 1.23/ 1.2230

FxWirePro Currency Strength Index: FxWirePro's Hourly GBP Spot Index was at -58.6648 (Neutral), while Hourly CHF Spot Index was at -98.6736 (Bullish) at 0415 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.