FxWirePro: GBP/CHF breaks above 200-week MA, scope for further upside

Chart - Courtesy Trading View 

GBP/CHF was trading 0.38% higher on the day at 1.2579 at around 09:35 GMT. The pair has broken above 200-week MA, raising scope for upside continuation. Momentum is bullish and volatility is high. On the weekly charts, MACD confirms a bullish crossover on signal line and ADX supports gains. 

Data Released: 

UK economy contracted less than anticipated, by 0.2% in December, and expanded by 1% during Q4 2021 as against expectations for the 1.1% increase, data published by the UK Office of National Statistics showed. 

Manufacturing output printed at 0.2% MoM in December, better than 0.1% expected and 0.7% in the prior month, while total industrial output came in at 0.3% vs. 0.1% expected and 0.7% last.

On an annualized basis, the UK manufacturing production figures came in at 1.3% in December, beating expectations of 1.7%. 

Total industrial output rose by 0.4% in the said month, against a 0.6% reading expected and the previous month's reading of -0.2%. 

UK goods trade balance numbers arrived at GBP-12.534 billion in December versus GBP-12.50 billion expectations and GBP-11.337 billion last. 

Total trade balance (non-EU) came in at GBP-7.876 billion in December versus GBP-5.665 billion previous.

Summary: Technical indicators are turning bullish. Scope for gains upto weekly cloud top at 1.2718 in the near-term. Weekly cloud breakout will fuel further upside.