FxWirePro: GBP/CHF erases early gains, mixed UK Retail Sales provides little support
Chart - Courtesy Trading View
GBP/CHF was trading 0.04% lower on the day at 1.1399 at around 06:40 GMT.
The pair has erased early gains and has slipped lower from session highs at 1.1430.
Softer UK data released earlier on Friday failed to provide support to the British pound.
UK retail sales arrived at 0.3% MoM in July vs. -0.2% expected and -0.1% previous. The core retail sales, jumped 0.4% MoM vs. -0.2% expected and 0.4% previous.
On an annualized basis, the UK retail sales plunged -3.4% in July versus -3.3% expected and -6.1% prior while the core retail sales fell by 3.0% versus -3.1% expected and -6.2% previous.
GBP/CHF is grinding lower, upside remains capped below 21-EMA. That said bullish RSI divergence keeps scope for upside.
Major Support Levels:
S1: 1.1365 (Trendline)
S2: 1.1358 (Lower BB)
Major Resistance Levels:
R1: 1.1427 (5-DMA)
R2: 1.1519 (21-EMA)
Summary: GBP/CHF was trading with a bearish bias. Bullish RSI divergence keeps scope for upside in the pair. 21-EMA is major resistance, watch out for decisive break above for upside continuation.