FxWirePro: GBP/CHF Daily Outlook

Chart - Courtesy Trading View 

Spot Analysis:

GBP/CHF was trading 0.12% lower on the day at 1.1642 at around 10:00 GMT

Previous Week's High/ Low: 1.1776/ 1.1531

Previous Session's High/ Low: 1.1699/ 1.1613

Fundamental Overview:

GBP/CHF sellers return as pair fails to capitalize on upbeat UK data-led gains.

Brexit woes overshadowed upbeat UK macro data and acted as a headwind for the British pound.

UK Office for National Statistics that the economy recorded a growth of 0.5% in May as against a flat reading expected.

Upbeat data validated market bets for a 50 bps rate hike by the Bank of England in August.

Technical Analysis:

- GBP/CHF slips lower from session highs at 1.1712

- Upside was rejected at 20-DMA which is trending lower

- Momentum is bearish, RSI is below the 50 mark

- Price action is below cloud and Chikou span is biased lower

Major Support and Resistance Levels:

Support - 1.1642 (200H MA), Resistance - 1.1703 (20-DMA)

Summary: GBP/CHF recovery is capped at 20-DMA, the pair is poised for further downside.