FxWirePro: GBP/CHF slumps below 61.8% Fib, hits 10-month lows at 1.2811, bias lower

Refer GBP/CHF chart on Trading View

• GBP/CHF slumps below 61.8% Fib, to hit 10-month lows at 1.2811.
   
• Brexit woes show little sign of dissipating anytime soon, GBP to remain under pressure.
   
• Traders await negotiations between the UK and the European Union to begin again in the coming weeks.
   
• The major is extending grind lower after 'Death Cross' formation on daily charts reinforces weakness.
   
• Momentum with the bears. Price action has broken below 61.8% Fib and next bear target lies at 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 1.30. Decisive break above could see upside till daily cloud.

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

Resistance levels - 1.2895 (5-DMA), 1.30 (21-EMA), 1.3094 (50-DMA)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-GBP-CHF-grinds-lower-after-Death-Cross-formation-next-bear-target-at-618-Fib-1412868) has hit TP1.

Recommendation: Book partial profits at lows. Hold for further downside.

FxWirePro Currency Strength Index: FxWirePro's Hourly GBP Spot Index was at -133.822 (Bearish), while Hourly CHF Spot Index was at -15.7032 (Neutral) at 1045 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.