FxWirePro: GBP/CHF Daily Outlook

Chart - Courtesy Trading View 

Spot Analysis:

GBP/CHF was trading 0.06% lower on the day at 1.2153 at around 10:10 GMT

Previous Week's High/ Low: 1.2298/ 1.2108

Previous Session's High/ Low: 1.2285/ 1.2157

Fundamental Overview:

Data released earlier on Thursday showed UK’s first readings of the Q1 2022 GDP eased to 0.8% QoQ, below 1.0% forecasts.

On a month-on-month basis, GDP posted a negative print of -0.1% for March, versus +0.1% expected and prior.

UK Industrial Production and Manufacturing Production data for March also disappointed market expectations, weighing on the pound.

Apart from poor data, Brexit woes also weigh on the British pound and are likely to keep the pair under pressure.

Technical Analysis:

- GBP/CHF was trading weaker for the 4th straight week

- Recovery in the pair has been rejected at daily cloud and 110-EMA

- GMMA indicator shows major and minor trend are bearish

- Momentum studies are bearish, Stochs and RSI are biased lower

Major Support and Resistance Levels:

Support - 1.2110 (trendline), Resistance - 1.2209 (21-EMA)

Summary: GBP/CHF trades with a bearish bias. Scope for test of trendline support at  1.2110. Further weakness on break below. Next major support lies at 1.2080.