Sterling tumbles broadly after the shockingly poor PMI services reading. GBP/CHF is finally accelerating down as the downtrend from 1.3070 extends. Near term outlook will now remain bearish as long as 1.2222 resistance holds. Next target is 61.8% retracement of 1.1107 to 1.3070 at 1.1857.
It’s too early to exclude the case that fall from 1.307 is merely a corrective mode. However, the multiple rejection by 55 week EMA is clearly a bearish sign. Sustained break of 1.1857 would set up even deeper decline back to 1.1107 (2020 low).
