FxWirePro: GBP/CHF Daily Outlook

Chart - Courtesy Trading View 

Spot Analysis:

GBP/CHF was trading 0.73% higher on the day at 1.0997 at around 12:25 GMT.

Previous Week's High/ Low: 1.1286/ 1.0931

Previous Session's High/ Low: 1.1117/ 1.0917

Fundamental Overview:

Data released earlier today showed UK Gross Domestic Product (GDP) contracted 0.3% MoM in August, missing 0% expectations and 0.2% previous.

Meanwhile, the Index of services (August) came in at -0.1% 3M/3M vs. 0.2% estimate and -0.2% prior.

UK industrial sector recovery also lost momentum in August, the latest data published by Office for National Statistics (ONS) showed on Wednesday.

UK Manufacturing output fell to -1.6% MoM in August missing 0% expectations and 0.1% prior, while total industrial output came in at -1.8% vs. -0.2% expected and -0.3% last.

On an annualized basis, the UK manufacturing production figures printed at -6.7% in August, missing expectations of 0.8%. 

Total industrial output plunged by 5.2% in same month against a 0.6% reading expected and the previous 1.1% print. 

Financial Times reported that the Bank of England (BOE) has signaled privately to bankers that it may extend bond buying to stabilize the financial system.

Technical Analysis:

- GBP/CHF grinds higher to test 21-EMA

- Upside remains capped at 5-DMA which is biased lower

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

- Price action is below cloud and decisive break above required for bearish invalidation

Major Support and Resistance Levels:

Support - 1.0941 (20-DMA), Resistance - 1.1016 (21-EMA)

Summary: GBP/CHF trades with a neutral intraday bias with a bearish tilt. Rejection at 21-EMA will see downside resumption.