- GBP/CHF is trading in a narrow range. Price action seems capped below 5-DMA.
- Minor recovery attempts from new 4-month lows at 1.2987 hit last week do little to change the bearish trend.
- Series of poor data continue to dent prospects for the UK, casting doubt on future rate hikes to come.
- The pair finds strong trendline support at 1.2985. Break below will see further weakness.
- Price has dipped below 50% Fib and breach at 1.2985 targets 61.8% Fib at 1.2845.
- On the flipside, 5-DMA is immediate resistance at 1.3044. Break above could see minor upside.
Support levels - 1.2985 (trendline), 1.29, 1.2845 (61.8% Fib)
Resistance levels - 1.3044 (5-DMA), 1.3115 (21-EMA), 1.3196 (55-EMA)
Recommendation: Stay short on break below 1.2985, target 1.2920/ 1.29/ 1.2865
FxWirePro Currency Strength Index: FxWirePro's Hourly GBP Spot Index was at -2.24082 (Neutral), while Hourly CHF Spot Index was at 112.003 (Bullish) at 1200 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
