FxWirePro: GBP/CHF consolidates above 200-DMA, focus on UK Manufacturing PMI

GBP/CHF chart on Trading View used for analysis

• GBP/CHF is extending sideways, consolidates break above 200-DMA.
   
• Given the given Brexit uncertainty, the upside remained well limited.
   
• Focus now on UK January Markit Manufacturing PMI for further impetus. 
   
• UK manufacturinf PMI is expected to come at 53.5 vs. 54.2 previously, which might add to Sterling negative tone.
   
• Technical studies on weekly charts are supportive of further upside. We do not see major reversal signs.
   
• On daily charts, Stochs are at overbought levels which suggests some downside likely.
   
• 200-DMA is strong support at 1.2927. Break below will see more downside. Bullish continuation eyes 200-W SMA at 1.3349.

Support levels - 1.3025 (110-W EMA), 1.2927 (200-DMA)

Resistance levels - 1.3241 (61.8% Fib). 1.3349 (200-W SMA)

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