FxWirePro: GBP/CHF holds modest gains, recovery looks limited, upside capped at 55-EMA

GBP/CHF chart - Trading View 

GBP/CHF was holding marginal gains on the day, trading 0.11% higher on the day at 1.2679 at around 08:30 GMT.

Recovery in the pair looks limited at upside remains caped at stiff resistance at 55-EMA.

Further, disappointing UK GDP and and unexpected drop in UK Manufacturing Production keep the pound under pressure.

Data released by Office for National Statistics (ONS) earlier on Friday showed Britain’s industrial sector recovery faltered in April.

Manufacturing output arrived at -0.3% MoM in April versus 1.5% expectations and 2.1% booked in March while total industrial output came in at -1.3% vs. 1.2% expected and 1.8% last.

On an annualized basis, the UK manufacturing production figures came in at 39.7% in April, missing expectations of 41.8%.

UK goods trade balance arrived at GBP-10.958 billion in April versus GBP-12.10 billion expectations and GBP-11.71 billion last. 

Total trade balance (non-EU) came in at GBP-5.549 billion in April versus GBP-6.548 billion previous.

Also, UK GDP missed estimates with 2.3% in April, the fastest monthly growth since July 2020 and follows strong growth of 2.1% in March.

Cautious sentiment ahead of the G7 meeting and fresh chatters over a delay in the UK reopening keep upside limited.

Technical indicators support a slightly bearish tilt. Upside remains capped at 55-EMA and any meaningful gains only on decisive break above.