FxWirePro: GBP/CHF dives below 110-EMA, resignations in May’s Cabinet trigger GBP sell-off

GBP/CHF chart on Trading View used for analysis

• GBP/CHF slumps over 1.40% on the day, trades at 1.2873 from session highs at 1.3094.
   
• Sharp sell off hitting the Sterling triggered by resignations in May’s Cabinet.
   
• Some members of PM May’s Cabinet resigned amidst a generalized opinion against the recently announced draft deal.
   
• UK Retail Sales came in below expectations for the month of October, further denting the pound.
   
• Data released earlier today showed UK retail sales contracted at a monthly 0.5% and expanding 2.2% YoY. Core sales dropped 0.4% m/m and rose at an annualized 2.7%.
   
• Technical indicators on intraday charts have turned bearish. Stochs and RSI are sharply lower. MACD shows bearish crossover.
   
• The pair has slipped below 110-EMA and is currently holding cloud support. Break below daily cloud will accentuate weakness. 
   
• Any bearish invalidation only on decisive breakout above 200-DMA.

Support levels - 1.2844 (converged cloud top and trendline), 1.2755 (Oct 30 low)

Resistance levels - 1.2944 (110-EMA), 1.3094 (200-DMA)

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