FxWirePro: GBP/CHF poised for more downside, pound under pressure post BoE

Chart - Courtesy Trading View 

Technical Analysis: Bias Bearish

- GBP/CHF was trading 1.09% lower on the day at 1.2137 at around 12:30 GMT

- The pair has hit fresh weekly low at 1.2115 before paring some losses

- Rejection at 200-DMA and thereafter daily cloud has reinforced downside in the pair

- Momentum is with the bears, RSI has turned south and has slipped below the 50 mark

- GMMA indicator shows major trend is bearish and minor trend is turning bearish

Fundamental Overview:

The British pound came under selling pressure after the BoE announced its policy decision.

UK central bank raised interest rates by 25 bps at the end of its May policy meeting earlier on Thursday as widely expected.

The MPC voted unanimously to hike rates for the fourth straight meeting, with three members voting to raise rates by 50 bps. 

The  monetary policy statement that followed suggested that some degree of further tightening may still be appropriate in the coming months.

The BoE now forecasts the UK economy contracting by 0.25% in 2023, a key factor that weighed on the British pound.

Support levels:

S1: 1.2077 (Apr 27th low)

S2: 1.2039 (Lower BB)

Resistance levels:

R1: 1.2194 (200H MA)

R2: 1.2209 (5-DMA)

Summary: GBP/CHF poised for more downside. Dip till 1.2040 likely.