FxWirePro: GBP/CHF extends gains above 21-EMA, scope for further gains

Chart - Courtesy Trading View 

Spot Analysis:

GBP/CHF was trading 0.52% higher on the day at 1.1080 at around 10:45 GMT

Previous Week's High/ Low: 1.1024/ 1.0156

Previous Session's High/ Low: 1.1024/ 1.0807

Fundamental Overview:

UK government withdraws plan to scrap higher tax rate, boosting the British pound across the board.

UK Finance Minister Kwasi Kwarteng confirmed that his government will not go ahead with a plan to scrap a 45% rate of income tax. 

The news helped ease concerns about the UK's ballooning public debt and provided a boost to the British pound. 

An upward revision of the UK Q2 GDP print adds some support to the pound. However, bleak economic outlook keeps upside in check.

Technical Analysis:

- GBP/CHF is extending gains for the third consecutive sessions

- The pair has broken above 21-EMA, raising scope for further gains

- Momentum is bullish, Stochs and RSI are sharply higher, volatility is high

- MACD line confirms bullish crossover on signal line, Chikou span is biased higher

Major Support and Resistance Levels:

Support - 1.0980 (21-EMA), Resistance - 1.1243 (55-EMA)

Summary: GBP/CHF spikes higher for the third straight session. Break above 21-EMA opens further upside in the pair.