FxWirePro: GBP/CHF recovery capped at 200-DMA, breakout could negate bearish bias

• GBP/CHF has edged higher from multi-week lows at 1.3051 hit on Tuesday's trade.
   
• The pair is currently hovering around 5-DMA at 1.3158 after hitting highs of 1.3163.
   
• Upside in the pair finds stiff resistance at 200-DMA at 1.3163 and decisive break above could invalidate the bearish bias.
   
• Price is consolidating break below 200-DMA. Momentum indicators show highly bearish bias.
   
• That said we evidence bullish divergence on Stochs which raises scope for upside. Further the pair has formed a Doji at lows on Wednesday's candle. 
   
• Close above 200-DMA could see test of 1.3357 (converged 21-EMA and cloud base).

Support levels - 1.31, 1.3038 (50% Fib), 1.2955 (Nov 15 low), 1.2845 (61.8% Fib)

Resistance levels - 1.3164 (200-DMA), 1.3168 (5-DMA), 1.3231 (38.2% Fib)

FxWirePro Currency Strength Index: FxWirePro's Hourly GBP Spot Index was at -16.0619 (Neutral), while Hourly CHF Spot Index was at -43.2931 (Neutral) at 0645 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex. 

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