FxWirePro: GBP/CHF grinds lower, upbeat UK PMIs fail to impress

Chart - Courtesy Trading View 

GBP/CHF was trading 0.25% lower on the day at 1.2454 at around 10:10 GMT.

An upside surprise in the UK Preliminary Manufacturing and Services PMIs earlier on Tuesday failed to impress GBP bulls.

UK seasonally adjusted IHS Markit/CIPS Manufacturing Purchasing Managers’ Index (PMI) unexpectedly improved to 58.2 in November versus 57.3 expected and 57.8 prior.

The Preliminary UK Services Business Activity Index for November also surprised positively, printing at 58.6 versus October’s final readout of 59.1 and 58.5 expected.

COVID-19 concerns benefitted the safe-haven franc and exerted pressure amid persistent Brexit woes.

That said, prospects for an imminent rate hike by the Bank of England in December are likely to keep downside limited. 

GBP/CHF poised for further downside. Recovery attempts capped at 55-EMA. The pair has paused 2 straight weeks of gains.

The pair hovers around 21-EMA support, break below will see further downside. Next immediate support lies at 20-DMA at 1.2427.