FxWirePro: GBP/CHF erases early losses as pound finds some aggressive bids, 88.6% Fib at 1.3060 in sight

GBP/CHF chart - Trading View 

GBP/CHF was trading 0.32% higher on the day at 1.2970 at around 09:50 GMT, outlook bullish.

The pair erased early losses and edged higher from session lows at 1.2920, scope for upside resumption.

British pound found some aggressive bids which pushed GBP crosses higher across the board.

Successful vaccination program and the diminishing possibility of further monetary policy easing by the Bank of England buoyed pound.

Meanwhile, the ongoing EU/UK vaccination spat and the recent escalation of diplomatic tensions between the UK and China might cap upside.

Technical Analysis:

- GMMA indicator shows major and minor trend are bullish

- 5-DMA is biased higher, pullback has held support at 21-EMA

- Momentum bullish, stochs have rolled over from near oversold and RSI is above 50

- Price action is extending gains above 200W MA and volatility is high

Support levels - 1.2885 (5-DMA), 1.2822 (21-EMA)

Resistance levels - 1.30, 1.3060 (88.6% Fib)

Summary: GBP/CHF is likely to extend gradual grind higher. Pullbacks are likely to be shallow. Scope for test of 88.6% Fib at 1.3060 ahead of trendline resistance at 1.3140.