FxWirePro: GBP/CHF extends bounce off trendline support, breaks above -DMA

Chart - Courtesy Trading View 

GBP/CHF was trading 0.77% higher on the day a 1.1362 at around 10:45 GMT.

The pair is extending bounce off strong trendline support, has broken above 5-DMA.

Hopes for a fiscal boost from the new UK PM along with more aggressive BoE rate hike bets keep the pound buoyed.

BoE policymaker Catherine Mann said on Monday that the central bank should be prepared to raise interest rates rapidly to tame inflation. 

The markets are now pricing in an 85% chance that the BoE will hike rates by 75 bps on September 15.

On the data front, the UK Constructive PMI unexpectedly rose from 48.9 to 49.2 in August, still in the contraction territory.

The pair trades with a bearish bias. GMMA indicator shows major and minor trend are bearish. 

21-EMA is immediate resistance at 1.1391, decisive break above will change near-term bias for the pair.