FxWirePro: GBP/CHF Near-Term Outlook

GBP/CHF chart - Trading View 

Spot Analysis:

GBP/CHF was trading 0.14% lower on the day at 1.2654 at around 10:40 GMT

Previous Week's High/ Low: 1.2815/ 1.2660

Previous Session's High/ Low: 1.2706/ 1.2587

Fundamental Overview:

The British pound boosted following a surprise hawkish tone from the Bank of England (BOE) on Thursday. 

BoE appeared to have brought forward their expectations for an interest rate rise to March, opening the door to an interest rate hike before the end of the year.

On the other side, the Swiss National Bank (SNB) left Key Policy Rate unchanged at -0.75% as widely expected. Both Sight Deposit and Policy Rates were kept unchanged at -0.75%.

SNB policy statement reiterated the view that CHF currency remained highly valued and expressed readiness of the central bank to intervene if necessary.

Technical Analysis:

- GBP/CHF has bounced off 200-DMA support with a Doji formation at lows

- Recovery attempts find major resistance at daily cloud

- GMMA indicator on the daily charts shows major and minor trend are neutral

- Momentum is bearish, RSI remains below the 50 mark

Major Support and Resistance Levels:

Support - 1.2585 (200-DMA), Resistance - 1.2679 (Cloud base)

Summary: Bounce off 200-DMA has dented scope for further downside. However, recovery attempts lack traction. 

Decisive break above daily cloud required for further upside. Breach at 200-DMA support will plummet prices.