FxWirePro: GBP/CHF breaks below daily cloud, more weakness on cards as Brexit impact risk flows

GBP/CHF chart on Trading View used for analysis

• GBP/CHF edges lower, breaks below daily cloud, we see scope for further weakness.
   
• Brexit news will continue to remain a key driver impacting risk flows and demand for CHF.
   
• UK Prime Minister Theresa May is still trying to desperately force through a Brexit compromise amidst a rising opposition from within her own political party.
   
• Expect Brexit headlines to continue twisting sentiment towards the bearish side.
   
• Technical studies are also bearish, Stochs and RSI are sharply lower and MACD shows bearish crossover.
   
• Break below cloud has raised scope for further weakness, drag till 1.25 now likely.

Support levels - 1.2743 (Nov 19 low), 1.2592 (Aug 15 low), 1.2501 (Sept 21 low)

Resistance levels - 1.2788 (cloud bottom), 1.2849 (5-DMA), 1.2934 (110-EMA)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-GBP-CHF-Trade-Idea-1460485) has hit TP1.

Recommendation: Book partial profits, hold for further weakness.

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.