GBP/CHF eyes 55-EMA, break below to accentuate downside | October 24, 2018

GBP/CHF -0.30% is extending gradual grind lower along 5-DMA which is sharply lower.

We see strong support at 1.2867 (nearly converged 55-EMA and cloud top). Break below will accentuate weakness.

Technical studies support downside in the pair. price action was rejected at 200-DMA 0.00% .

RSI and Stochs are biased lower and we see bearish divergence on Stochs along with a bearish MACD line crossover on signal line which adds to the bearish bias.

Risks skewed to the downside for the pound. Premature hopes on Brexit headlines once more gave way to discouragement.

The European Union offer fell far short of PM May's current demands.

Support levels - 1.2866 (nearly converged cloud top and 55-EMA), 1.2748 (Lower BB), 1.2635 ( trendline )

Resistance levels - 1.2944 (5-DMA), 1.3114 ( 200-DMA 0.00% )

Good to go short on upticks around 1.2910, SL: 1.30, TP: 1.2870/ 1.2750/ 1.27