FxWirePro: GBP/CHF grinds lower along 5-DMA, break below 55-EMA to accentuate weakness

GBP/CHF chart on Trading View used for analysis

• GBP/CHF is extending gradual grind lower along 5-DMA which is sharply lower.
   
• The pair is trading in a narrow range on the day and we see scope for wekaness.
   
• We see strong support at 1.2867 (nearly converged 55-EMA and cloud top). Break below will accentuate weakness.
   
• Technical studies support downside in the pair. price action was rejected at 200-DMA.
   
• RSI and Stochs are biased lower and we see bearish divergence on Stochs along with a bearish MACD line crossover on signal line which adds to the bearish bias.
   
• Risks skewed to the downside for the pound. Premature hopes on Brexit headlines once more gave way to discouragement.
   
• The European Union offered UK Prime Minister Theresa May an Irish border workaround on Tuesday, but the offer falls far short of PM May's current demands.

Support levels - 1.2866 (nearly converged cloud top and 55-EMA), 1.2748 (Lower BB), 1.2635 (trendline)

Resistance levels - 1.2944 (5-DMA), 1.3114 (200-DMA)

Recommendation: Good to go short on upticks around 1.2910, SL: 1.30, TP: 1.2870/ 1.2750/ 1.27

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