FxWirePro: GBP/CHF slips further into daily cloud, mixed UK data dump provides little support

Chart - Courtesy Trading View 

Spot Analysis:

GBP/CHF was trading 0.31% lower on the day at 1.1163 at around 13:15 GMT.

Previous Week's High/ Low: 1.1545/ 1.1247

Previous Session's High/ Low: 1.1299/ 1.1179

Fundamental Overview:

The final revision of UK Q3 GDP data confirmed on Thursday that the UK economy contracted by 0.3% QoQ, more than -0.2% expected and compared to -0.2% prior.

On an annualized basis, UK GDP increased by 1.9% in Q3 vs. 2.4% registered in the first estimate while missing expectations at 2.4%.

Meanwhile, the UK Q3 Current Account arrived at £-19.402 when compared to the £-33.224B expected and £-35.086B in the prior quarter.

The country’s Total Business Investment data for the third quarter stood at 1.3% QoQ and -2.5% YoY.

Technical Analysis:

- GBP/CHF slips further into the daily cloud after rejection at Triple Top

- Momentum is bearish and volatility is high and rising

- GMMA indicator shows major trend is neutral, while minor trend is turning bearish

- MACD and ADX support downside in the pair

Major Support and Resistance Levels:

Support - 1.1048 (Nov 2022 low)

Resistance - 1.1331 (55-EMA)

Summary: GBP/CHF trades with a bearish bias. Scope for further weakness. Dip till cloud base likely. Bearish invalidation only above 200-DMA.