FxWirePro: GBP/CHF bounces off 200-DMA support, BoE in focus for further impetus

GBP/CHF chart - Trading View 

Spot Analysis:

GBP/CHF was trading 0.38% higher on the day at 1.2645 at around 10:55 GMT.

The pair closed largely unchanged in the previous session at 1.2596.

Fundamental Overview:

Swiss National Bank (SNB) left Key Policy Rate unchanged at -0.75% as widely expected. Both Sight Deposit and Policy Rates were kept unchanged at -0.75%.

SNB policy statement reiterated the view that CHF currency remained highly valued and expressed readiness of the central bank to intervene if necessary.

SNB President Jordan noted that the central bank was watching to see if inflation dynamics were temporary. He added that the SNB expansionary policy was the right one and policymakers saw no reason to change it.

Later in the day, Bank of England (BOE) is seen holding off on hawkish rhetoric despite higher inflation as growth has softened.

BoE is expected to leave Interest Rates unchanged at 0.10% and to maintain overall bond purchase at £895B.

Technical Analysis:

- GBP/CHF has bounced off 200-DMA support

- The pair has formed a Doji on the previous session's candle

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

- Upside finds stiff resistance at daily cloud, break above will fuel further gains

Major Support and Resistance Levels:

Support - 1.2581 (200-DMA), Resistance - 1.2656 (Cloud base)

Summary: CHF weakness driven by SNB's dovish outcome keeps the pair supported. Focus on BoE policy decision for further impetus. 

Bounce off 200-DMA has dented scope for further downside. Watch out for break above daily cloud for further upside.