Chart - Courtesy Trading View
The latest optimism over a new Brexit deal underpins the British Pound and supports the pair higher. News about confirmation of a final deal on the Northern Ireland protocol between the UK and EU keeps sentiment buoyed. Further, rising bets for additional rate hikes by the Bank of England (BoE) lend additional support to the pound.
Focus on speeches by BoE officials - Deputy Governor Jon Cunliffe, Chief Economist Huw Pill and Monetary Policy Committee member Catherine Mann for cues.
Technical Analysis: Bias Bullish
- GBP/CHF spikes over 0.65% and was trading at 1.1348 at around 10:50 GMT
- Price has broken above daily cloud and is on track to test 200-DMA
- Momentum is with the bulls, Stochs and RSI are sharply higher
- MACD confirms bullish crossover on signal line and ADX supports gais
- The pair trades above 200H MA and GMMA indicator is bullish on the intrday charts
Support levels - 1.1298 (110-EMA), 1.1186 (200H MA)
Resistance levels - 1.1395 (200-DMA), 1.1530 (Trendline)
Summary: GBP/CHF poised to extend upside mometum. On track to test 200-DMA at 1.1395. Failure to close above daily cloud negates any upside bias.
