FxWirePro: GBP/CHF erases early gains, eyes 55-EMA at 1.2665

GBP/CHF chart - Trading View 

GBP/CHF has struggled to capitalize on its intraday positive move, slips lower from session highs at 0.2795.

The pair was trading 0.07% lower on the day at 09:10 GMT, scope for further weakness.

Pound under pressure after UK authorities said the risk of blood clots due to the AstraZeneca vaccine is higher under the age of 30. 

On the data front, UK Markit services PMI came in at 56.30 for March missing market estimates of 56.80. 

Meanwhile, UK Markit Construction PMI for March beat forecasts at 54.6 and edged higher from previous month's 53.3 to print at 61.7.

The pair has paused decline after upbeat UK construction PMI. However, technical indicators point to further weakness.

Momentum studies are bearish and Stochs and RSI show bearish divergence from price action which is likely to drive prices lower.

GBP/CHF is on track to test 55-EMA at 1.2666 ahead of 1.26 (cloud top) and then 38.2% Fib retracement at 1.2542.