FxWirePro: GBP/CHF trades range bound ahead of UK Construction PMI, holds strong support at 55-EMA

GBP/CHF chart on Trading View used for analysis

• GBP/CHF trades largely range bound, with day's high at 1.2837 and low at 1.2812.
   
• Pound traders now await UK Construction PMI after the currency's whippy action on Monday. GBP/CHF spiked to 1.2882, before paring gains to close at 1.2828.
   
• Brexit headlines will continue to drive the GBP through the broader markets. The path for Britain's EU exit still remains as cloudy and unexplained as it was following the referendum.
   
• On the data front, Markit's UK Manufacturing PMI beat expectations, printing at 53.8. Upbeat construction PMI could provide further support to the pair.
   
• Technical studies support upside in the pair. RSI and Stochs are biased higher. We see -ve DMI crossover on -ve DMI and MACD also supports uptrend.
   
• The pair has broken into daily cloud and has edged above 23.6% Fib at 1.2788. Next immediate resistance lies at 1.2931 (cloud top). Break out above cloud will see further upside.
   
• On the flip side, 55-EMA is strong support at 1.2775 and we see weakness on break below.

Support levels - 1.28, 1.2775 (55-EMA), 1.2722 (50-DMA), 1.2706 (21-EMA)
Resistance levels - 1.2931 (cloud top), 1.2946 (100-DMA), 1.2992 (38.2% Fib)

FxWirePro Currency Strength Index: FxWirePro's Hourly GBP Spot Index was at -42.635 (Neutral), while Hourly CHF Spot Index was at -95.178 (Bearish) at 0545 GMT.

For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.