Chart - Courtesy Trading View
Spot Analysis:
GBP/CHF was trading 0.52% higher on the day at 1.1080 at around 10:45 GMT
Previous Week's High/ Low: 1.1024/ 1.0156
Previous Session's High/ Low: 1.1024/ 1.0807
Fundamental Overview:
UK government withdraws plan to scrap higher tax rate, boosting the British pound across the board.
UK Finance Minister Kwasi Kwarteng confirmed that his government will not go ahead with a plan to scrap a 45% rate of income tax.
The news helped ease concerns about the UK's ballooning public debt and provided a boost to the British pound.
An upward revision of the UK Q2 GDP print adds some support to the pound. However, bleak economic outlook keeps upside in check.
Technical Analysis:
- GBP/CHF is extending gains for the third consecutive sessions
- The pair has broken above 21-EMA, raising scope for further gains
- Momentum is bullish, Stochs and RSI are sharply higher, volatility is high
- MACD line confirms bullish crossover on signal line, Chikou span is biased higher
Major Support and Resistance Levels:
Support - 1.0980 (21-EMA), Resistance - 1.1243 (55-EMA)
Summary: GBP/CHF spikes higher for the third straight session. Break above 21-EMA opens further upside in the pair.
