• FxWirePro: GBP/CHF recovery lacks traction, weakness to extend on break below trendline support at 1.2985

    Source: FxWire Pro - Technicals / 20 Jul 2018 01:17:27   America/New_York

    • Minor recovery attempts in GBP/CHF do little to change the trend as bias remains bearish.
       
    • Series of poor data continue to dent prospects for the UK, casting doubt on future rate hikes to come.
       
    • GBP/CHF hovers around 1.30 handle, edges higher from new 4-month lows at 1.2987 hit on Thursday.
       
    • The pair is holding 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 1.3073. Break above could see minor upside.

    Support levels - 1.2985 (trendline), 1.2913 (Feb 9 low), 1.2863 (Mar 2 low), 1.2845 (61.8% Fib)

    Resistance levels - 1.3038 (50% Fib), 1.3073 (5-DMA), 1.3123 (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 all targets.

    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 -72.2993 (Neutral), while Hourly CHF Spot Index was at 81.3338 (Neutral) at 0445 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex
     

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