- GBP/CHF is extending weakness after break below 21-EMA, bias lower.
- The British pound tumbled across the board after UK’s inflation figures failed to meet expectations.
- UK headline CPI rose at an annualized 2.4% y/y missing forecasts at 2.6%. Core CPI fell to 1.9% y/y.
- Poor inflation figures could pour cold water over expectations of a rate hike by the Bank of England at its August meeting.
- The pair is trading 0.44% lower on the day, at 1.3056 at the time of writing.
- Technical indicators on daily charts have turned bearish. Stochs and RSI are sharply lower.
Support levels - 1.3050 (trendline support), 1.30, 1.2976 (88.6% Fib)
Resistance levels - 1.31, 1.3148 (21-EMA), 1.3169 (5-DMA)
Call update: Our previous call (https://www.econotimes.com/FxWirePro-GBP-CHF-rejected-at-strong-trendline-resistance-at-13265-break-below-21-EMA-13162-to-see-further-weakness-1404410) has almost hit TP1.
Recommendation: Book partial profits at lows. Watchout for break below 1.3050 for further weakness.
FxWirePro Currency Strength Index: FxWirePro's Hourly GBP Spot Index was at -158.403 (Bearish), while Hourly CHF Spot Index was at 66.4759 (Neutral) at 0745 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
