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.
