FxWirePro: GBP/CHF dives over 0.50%, pound weighed down by possibility of a extended lockdown and dismal UK macro data

GBP/CHF chart - Trading View 

GBP/CHF slumped over 0.50% and was trading at 1.2085 at around 13:30 GMT.

The pair paused 3 straight sessions of gains as GBP came under some selling pressure on Friday.

Pound sterling weighed down by possibility of a extended lockdown and dismal UK macro data.

UK PMI prints missed market expectations by a big margin, raising concerns about the UK economic growth at the start of 2021.

UK flash Manufacturing PMI dropped to 52.9 in January as against consensus estimates pointing to a fall to 54 from 57.5 previous.

Services sector printed at 38.8, plunging further into the contraction territory and worse than 45 anticipated and 49.4 recorded in December.

Adding to this was downbeat UK Retail Sales figures, which recorded a modest rise of 0.4% in December.

Technically, GBP/CHF is showing overbought pressures. Price action is bound for some pullback. Weekly cloud is strong resistance and breach at 200H MA adds to the bearish bias.

The pair is on track to test 21-EMA support at 1.2054. Breach below will drag prices lower. Next major support lies at 55-EMA at 1.1998.