GBP/CHF breaks below 1.2600, eyes July lows

GBP/CHF accelerated the decline during the last hours and now it appears to be headed to test post-Brexit referendum lows, that reached back on July 6 at 1.2510.

Yesterday the pair broke a key support at 1.2730 clearing the way for an extension of the decline. It printed a fresh low at 1.2588 and currently it trades at 1.2595, 200 pips below the level it had at the beginning of the week.

A renewed weakness in the pound amid expectation of further stimulus from the Bank of England and also a stronger Swiss franc in the market were behind the fall of the GBP/CHF pair that started a week ago.

Technical levels

To the downside, support levels might be located at 1.2555 (July 6 low), 1.2510 (July 5 low) and 1.2400 (psychological). On the opposite direction, resistance could be seen at 1.2670 (Aug 10 low), 1.2685 (daily high) and 1.2730 (Aug 2 & 9 low).