Sterling remains the worst performer for the week on concerns over Brexit uncertainties. It’s reported that EU is considering legal against the UK According to a draft working paper by the EU, UK’s Internal Market Bill is seen as a “clear breach of substantive provisions” of the Brexit withdrawal agreement
European Commission Vice-President Maroš Šefčovič will travel to London today to meet UK Chancellor of the Duchy of Lancaster Michael Gove for an ” extraordinary meeting of the Joint Committee” that oversees Brexit implementation. The EU said it “seeks clarifications from the UK on the full and timely implementation of the Withdrawal Agreement” EU’s chief negotiator Michel barnier, arrived in London yesterday, is expected to confront the UK counterpart David Frost over the issue too.
GBP/CHF’s decline from 1.222 extends to as low as 1.1831 so far. Such decline is currently seen as the third leg of the consolidation pattern from 1.2259. Deeper fall could be seen to 1.1630 and probably below. But strong support is expected at 61.8% retracement of 1.1102 to 1.2259 at 1.1544 to contain downside and bring rebound.
However, note that GBP/CHF was just rejected by 55 week EMA. Sustained break of 1.1544 would in turn argue that larger down trend is indeed resume for a new low below 1.1102.
