FxWirePro: GBP/CHF struggles at 1.2455 support, Doji at lows along with bullish divergence raises scope for pullback

GBP/CHF chart on Trading View used for analysis

• Pound steadies on revived Brexit hopes, GBP/CHF edges off lows at 1.2470 to trade 0.75% higher on the day at 1.2568.
   
• Long-term trend in the pair remains bearish, price action below cloud and major moving averages.
   
• The pair is extending weakness after being rejected at 200-W SMA. Technical indicators on weekly charts are highly bearish. 
   
• Break below 61.8% Fib keeps scope for weakness till 78.6% Fib at 1.2227.
   
• That said, the pair is struggling to break below strong support at 1.2455. 
   
• We evidence a possible Doji formation on the weekly charts which along with bullish divergence on RSI and Stochs on the dailies raises scope for pullbacks.
   
• Breakout above 21-EMA resistance at 1.2635 could see test of 50-DMA at 1.2863.
   
• Break below 1.2455 will see resumption of weakness. Breakout above 55-EMA to see upside till 200-DMA.

Support levels - 1.2514 (5-DMA), 1.2455 (trendline support), 1.2227 (78.6% Fib)

Resistance levels - 1.2575 (61.8% Fib), 1.2634 (21-EMA), 1.2833 (55-EMA) 

Recommendation: Stay short on break below 1.2455, SL: 1.2575, TP: 1.23/ 1.2230

FxWirePro Currency Strength Index: FxWirePro's Hourly GBP Spot Index was at 167.82 (Bullish), while Hourly CHF Spot Index was at 40.0689 (Neutral) at 1115 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.