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FxWirePro: GBP/CHF capped at 21-EMA, COVID-19/Brexit woes weigh on sterling

GBP/CHF chart - Trading View 

Technical Analysis: Bias Neutral

- GBP/CHF was trading largely unchanged on the day at 1.2663 at around 10:40 GMT

- Upside in the pair is capped at 50-DMA, decisive break above required for further gains

- Price action is consolidating above 200-week MA, retrace below will negate any further upside

- Near-term bias for the pair remains neutral with GMMA going flat on major and minor moving averages

- Volatility is low on the daily charts with Bollinger bands narrowing on the daily charts

Support levels - 1.2626 (Lower BB), 1.2584 (110-EMA), 1.2542 (38.2% Fib)

Resistance levels - 1.2697 (50-DMA), 1.2745 (23.6% Fib), 1.2771 (Upper BB)

Summary: UK's potential delay its plans to end restrictions fully in light of the spread of the new Delta variant keeps downside pressure on the pound. EU-UK collision over Norther Ireland protocol further contributed to the sterling's underperformance.

GBP/CHF is set to extend sideways grind. Stiff resistance for the pair seen till 1.27 mark. Decisive break above required for upside continuation. The pair finds major support at 110-EMA at 1.2585. Break below will drag the pair lower.

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