FxWirePro: GBP/CHF grinds higher, focus on crucial UK Dec CPI data for impetus

GBP/CHF chart - Trading View 

GBP/CHF was extending marginal gains on the day and was trading 0.18% higher at 1.2128 at around 06:25 GMT.

The pound sterling buoyed across the board on U.S. stimulus hopes and declining coronavirus cases in the UK.

Market’s cautious ahead of the UK Consumer Price Index (CPI). Inflation data is crucial to determine the need for further stimulus amid the third lockdown in the UK.

Analysts expect headline CPI inflation to rise from 0.3% prior to 0.5% on an annual basis. The Core CPI is expected to print at 1.3% YoY print versus 1.1% previous readouts. 

Technical bias for the pair is bullish. Upbeat data could carry the bullish momentum further.

Price action is above 200-DMA and is consolidating 'Symmetric Triangle' breakout. Next bull target lies at 50% Fib at 1.2212 ahead of 110W EMA at 1.2287. 

On the flipside, 200H MA is strong support at 1.2085. Break below will drag the pair lower to test 21-EMA at 1.2040.