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FxWirePro: GBP/CHF holds marginal gains amid mixed UK data, trades above cloud and 200-DMA

GBP/CHF chart - Trading View 

GBP/CHF was trading 0.22% higher on the day at around 1.2660 at 0820 GMT, outlook is turning bullish. The pair is trading above daily cloud and 200-DMA, scope for further gains as oscillators turn bullish.

Data Released:

UK economy expanded less-than-expected in August with the monthly GDP arriving at 0.4% in September vs. 0.5% expected and 0.1% previous. 

Meanwhile, the Index of Services (August) came in at 3.7% 3M/3M vs. 1.2% expected and 5.2% prior.

UK manufacturing output arrived at 0.5% MoM in August beating expectations at 0% and compared to a reading of -0.6% booked in July. 

On an annualized basis, the UK manufacturing production figures came in at 4.1% in August, missing expectations of 6.0%. 

Total industrial output jumped by 3.7% in the eighth month of the year against a 3.0% reading expected and the previous 4.4% print. 

Technical Analysis:

- GBP/CHF was extending gains for the 2nd straight session

- Price action is above 200-DMA and daily cloud

- Stochs and RSI are biased higher and show bullish momentum

- MACD shows bullish crossover on signal line, volatility is high

Major Support and Resistance Levels: 

Support: 1.2626, Resistance: 1.2801 (76.8% Fib)

Summary: GBP/CHF intraday bias has turned bullish as shown by GMMA indicator. Decisive close above daily cloud will fuel further gains. Next bull target lies at 1.28, bullish invalidation only below 200-DMA.

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