FxWirePro: GBP/CHF breaks into daily cloud, intraday bias bearish, stay short

GBP/CHF chart on Trading View used for analysis

• GBP/CHF is extending grind lower, slips into daily cloud, bias lower. The pair is trading in a narrow range on the day and we see scope for wekaness.
   
• Brexit headlines continue to disappoint. EU-UK negotiations have taken a turn for the worse, continue to drain confidence from the Pound.
   
• Upside in the pair remains capped at 5-DMA which is sharply lower. Break below strong support at 55-EMA raises scope for further weakness.
   
• Technical studies support downside in the pair. Price action was rejected at 200-DMA.
   
• RSI and Stochs are biased lower and we see bearish divergence on Stochs along with a bearish MACD line crossover on signal line.

Call update: Our previous call (https://www.econotimes.com/FxWirePro-GBP-CHF-grinds-lower-along-5-DMA-break-below-55-EMA-to-accentuate-weakness-1447816) has hit TP1.

Recommendation: Book partial profits and hold for further weakness.

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