FxWirePro: GBP/CHF holds marginal gains, mixed UK macro data and the risk-off environment caps upside

Chart - Courtesy Trading View 

GBP/CHF was trading 0.13% higher on the day at 1.1120 at around 08:45 GMT. Holds strong support at channel base. 

Data released earlier on Friday showed UK economy expanded by 0.3% in January as compared to the 0.5% contraction recorded in the previous month.

UK Goods Trade Balance (GDP) for January deteriorated less than forecast to £-7.808B, vs £-7.966B expected and prior readings of £-7.484B.

Manufacturing Production, which makes up around 80% of total industrial production, eased by -0.4% MoM in January, more than -0.1% expected . 

UK total Industrial Production fell by -0.3% MoM, more than expected -0.2% fall versus the 0.3% previous expansion.

On a yearly basis, Manufacturing Production improved to -5.2% in the reported month, missing forecast at -5.0%  versus -5.7% prior.

Industrial Production for January dropped to -4.3% YoY, above -4.0%  expected versus -4.0% previous.

Technical Analysis:

- GBP/CHF trades in Horizontal Channel Pattern, grinds sideways with Channel

- MACD confirm bearish crossover on signal line, ADX supports weakness

- Momentum is bearish, Stochs and RSI are sharply lower

- GMMA indicator shows major and minor trend are bearish

Support and Resistance Levels:

Support level - 1.1046 (Lower BB), Resistance level -1.1134 (5-DMA)

Summary: GBP/CHF upside likely to stay capped below 5-DMA. Technical bias remains bearish. Watch out for break below channel base for further weakness.