Chart - Courtesy Trading View
Spot Analysis:
GBP/CHF was trading 0.48% lower on the day at 1.1037 at around 09:20 GMT
Previous Week's High/ Low: 1.1378/ 1.1096
Previous Session's High/ Low: 1.1130/ 1.1028
Fundamental Overview:
Data released on Wednesday showed UK’s Food price inflation increased for the 13th consecutive month to 1.5% MoM.
However, the headline Consumer Price Index (CPI) declined to 9.9% YoY missing expectations at 10.2% and compared to 10.1% previous readings.
Further, the Retail Price Index also eased, reprinting 12.3% YoY figures versus 12.4% expected.
Also, approaching deadline to trigger Article 16 relating to Brexit and lack of response from London exerts additional downside pressure.
Technical Analysis:
- GBP/CHF trades below major moving averages which are trending lower
- Momentum is bearish, stochs and RSI are sharply lower
- Price action is below cloud and Chikou span is biased lower
- MACD and ADX support downside in the pair
Major Support and Resistance Levels:
Support - 1.0952 (Lower W BB), Resistance - 1.1081 (5-DMA)
Summary: GBP/CHF has resumed weakness after brief pause on Wednesday's trade. Major trend is bearish. The pair is poised to test fresh record lows.
