Sterling is so far having very little reaction to the last minute trade deal between the UK and EU. Overall outlook is mixed for now. Details were published in a 1246-page document titled “Draft EU-UK Trade and Cooperation Agreement“. European Parliament is expected to meet today to discuss the agreement, while the UK Parliament will vote on December 30.
GBP/CHF staged a strong rebound last week but upside is capped below 1.2203/59 resistance zone. Range trading could still continue between 1.1598/2259 for the near term. Resumption of rebound from 1.1102 is now mildly in favor. Firm break of 1.2259 would pave the way back to 1.3301 medium term structural resistance.
However, break of 1.1598 support will confirm rejection by falling 55 week EMA, which should then keep the long term down trend intact for another low through 1.1102 at a later stage.
