Sterling weakens in general after much weaker than expected consumer inflation reading. GBP/CHF appears to be rejected by 4 hour 55 EMA with prior recovery and looks vulnerable. Immediate focus is now on 1.2769 minor support. Firm break there will resume decline from 1.2985.
Such decline is now likely correcting whole rise from 1.1683. It could target 55 day EMA (now at 1.2540) before completion. Nevertheless, we’d expect strong support from 38.2% retracement of 1.1683 to 1.2985 at 1.2488 to bring rebound and retain near term bullishness.
