FxWirePro: GBP/CHF extends sideways within daily cloud, bias neutral

Chart - Courtesy Trading View 

Technical Analysis:

- GBP/CHF was trading 0.16% higher on the day at 1.1316 at around 13:20 GMT

- The pair is extending sideways along 21-EMA support, bias remains neutral

- Momentum is bullish, and volatility is low, possibility of directional shift

- Price action is within the daily cloud and breakout will provide a clear directional bias

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

Fundamental Overview:

UK inflationary pressures have softened as evidenced by the December’s Consumer Price Index (CPI) report, released on Wednesday. 

UK headline inflation eased to 10.5% on an annual basis and the core CPI that excludes oil and food prices held steady at 6.3%. 

Minor softening of UK inflation is insufficient to trim hawkish BoE bets, continuation of hawkish monetary policy by the bank of England (BoE) likely.

Major Support and Resistance Levels:

Support levels - 1.1267 (21-EMA), Resistance levels - 1.1348 (110-EMA)

Summary: GBP/CHF trades directional within the daily cloud. Watch out for cloud break out for clear direction.