FxWirePro: GBP/CHF hits fresh record lows, major trend remains bearish

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.