FxWirePro: GBP/CHF extends weakness, pound ignores upbeat retail sales data

Chart - Courtesy Trading View 

Spot Analysis: 

GBP/CHF was trading 0.26% lower on the day at 1.2204 at around 10:30 GMT

Previous Week's High/ Low: 1.2290/ 1.2102

Previous Session's High/ Low: 1.2359/ 1.2231

Fundamental Overview:

UK Retail Sales beat estimates with 1.4% MoM in November vs. 0.8% expected and 1.1% previous. 

The core retail sales, stripping the auto motor fuel sales, stood at 1.1% MoM vs 0.8% expected and 2.0% previous.          

On an annualized basis, the UK retail sales jumped by 4.7% in November versus 4.2% expected and -1.5% prior while the core retail sales rose by 2.7% versus 2.4% expectations and -2.1% previous.

COVID-19 jitters benefitted the safe-haven CHF and exerted some pressure.

Technical Analysis:

- GBP/CHF fails at 21-EMA, bias remains bearish

- The pair has formed an 'Inverted Hammer' on the previous day's candle

- GMMA indicator shows major and minor trend are bearish

- Price action is below cloud, RSI is below 50, momentum bearish

Major Support and Resistance Levels:

Support - 1.2217 (5-DMA), Resistance - 1.2268 (21-EMA)

Summary: GBP/CHF trades with a bearish bias. Bearish invalidation only above 21-EMA