FXStreet (Mumbai) – The weakness in the cable, coupled with a technical correction in the oversold CHF saw the GBP/CHF cross drop to its hourly 200-MA at 1.5456 levels.
Rejected at 1.5508
The cross clocked a high of 1.5508 levels earlier today, before moving lower to hourly 200-MA. The cable fell to an intraday low of 1.50 in Europe, while the USD/CHF trimmed gains to trade around 1.03 handle. Moreover, the sharp sell-off in the CHF since the last few weeks has left the currency oversold across the board.
The focus now shifts to the UK final PMI manufacturing figure for November due for release tomorrow.
GBP/CHF Technical Levels
A break below the hourly 200-MA at 1.5456 would expose 1.5434 (hourly 100-MA). A break lower would open doors for a sell-off to 1.54 handle. On the higher side, 1.5477 (hourly 50-MA) could act as a resistance followed by a hurdle at 1.5508 (daily high).
(Market News Provided by FXstreet)