FxWirePro: GBP/CHF pivotal around major trendline support at 1.3050, focus on UK retail sales for further impetus

Thursday, July 19, 2018 7:18 AM UTC

GBP/CHF is extending range trade on the day, hovers around major trendline support at 1.3050.
GBP tumbled across the board after UK’s inflation figures failed to meet expectations.
After poor inflation data markets wary as upcoming Retail Sales are expected to show contraction.
June Retail Sales m/m is forecast to clock in at just 0.4%, compared to the previous month's 1.3%. The y/y Retail Sales for June are expected to remain flat at 3.9%.
Monthly Core Retail Sales (excluding fuels) for June is also expected to decline, with traders calling for a slide from 1.3% to 0.3%.
Technical indicators on daily charts have turned bearish. Stochs and RSI are sharply lower.
Any positive surprise in the data could see momentary spike in GBP which could provide good entry opportunities.
The pair finds stiff resistance at 1.3133 (nearly converged 5-DMA and 21-EMA). Break above could see test of 200-DMA. Bearish invalidation only on break above.
On the flipside, decisive break below major trendline support at 1.3050 will see drag lower.

Support levels - 1.3050 (trendline support), 1.30, 1.2976 (88.6% Fib)

Resistance levels - 1.31, 1.3133 (5-DMA), 1.3139 (21-EMA)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-GBP-CHF-rejected-at-strong-trendline-resistance-at-13265-break-below-21-EMA-13162-to-see-further-weakness-1404410) has hit TP1/2.

Recommendation: Book partial profits at lows. Watchout for break below 1.3050 for further weakness.

FxWirePro Currency Strength Index: FxWirePro's Hourly GBP Spot Index was at -141.89 (Bearish), while Hourly CHF Spot Index was at 62.33 (Neutral) at 0715 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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