FxWirePro: GBP/CHF shows signs of bullish resumption, 88.6% Fib at 1.3060 in sight

GBP/CHF chart - Trading View 

GBP/CHF was trading 0.35% higher on the day at 1.2990 at around 09:20 GMT, bias bullish. Upbeat UK GDP data is aiding upside.

Final UK Q4 GDP came in at 1.3% QoQ vs. 1.0% expected and 1.0% last while on an annualized basis the figure stood at -7.3% vs. -7.8% expected and -7.8% seen previously.

The Current Account numbers for Q4 came in at GBP-26.3 B versus GBP-34 B expected and GBP -14.275 B prior.

Meanwhile, the Total Business Investment arrived at 5.9% QoQ in Q4 vs. 1.3% previous and 1.3% expectations.

Also, successful vaccination program and the diminishing possibility of further monetary policy easing by the Bank of England keep the pound buoyed.

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 and RSI are biased higher and RSI is above 50

- Price action is above cloud and Chikou span is biased higher

- Volatility is rising, MACD is on verge of bullish crossover on signal line

Support levels - 1.2932 (5-DMA), 1.2888 (20-DMA), 1.2841 (21-EMA)

Resistance levels - 1.30, 1.3060 (88.6% Fib), 1.3140 (Trendline)

Summary: GBP/CHF is showing signs of upside continuation after brief consolidation above 20-DMA. Scope for test of 88.6% Fib at 1.3060 ahead of trendline resistance at 1.3140.