GBP/CHF down 200 pips in 2 days; holds above 1.5000

FXStreet (Córdoba) – The pound dropped for the second day in a row against the Swiss franc and is about to post the lowest close since July 29. It was the first time since July 7-8 that GBP/CHF dropped for two day in a row.

Yesterday the pair lost ground amid a weak pound and stronger Swiss franc that was among the best performers in the forex market. Today, on European hours, a weak reading on UK retail sales, pushed it further to the downside.

It bottomed at 1.5019 and then bounced to the upside, finding resistance at 1.5120/300 and dropped back below 1.5100.

GBP/CHF outlook

The momentum remains negative for the pair, but the 1.5000 zone could became a strong support area; currently it is exposed and it could be tested before the end of the week.

Price has fallen below the daily 20-SMA for the first time in a month that currently stands around 1.5170, if the pound manages to rise back above (and particularly if it extends to 1.5200) it could remove negative momentum.

The pound dropped for the second day in a row against the Swiss franc and is about to post the lowest close since July 29. It was the first time since July 7-8 that GBP/CHF dropped for two day in a row.

(Market News Provided by FXstreet)