FxWirePro: GBP/CHF extends gains, pound buoyed ahead of UK CPI data

Chart - Courtesy Trading View 

Spot Analysis:

GBP/CHF was trading 0.31% higher on the day at 1.2514 at around 05:50 GMT.

Previous Week's High/ Low: 1.2425/ 1.2287

Previous Session's High/ Low: 1.2503/ 1.2389

Fundamental Overview:

UK Consumer Price Index (CPI) for October month is due early on Wednesday at 07:00 GMT.

Today’s inflation numbers will be watched closely given the Bank of England’s (BOE) emphasis on CPI to dial back the bond purchase.

The headline CPI inflation is expected to rise to 3.9% YoY versus 3.1% prior while the Core CPI is likely to improve to 3.0% from 2.9% in October. 

On a month-on-month basis, CPI could jump to 0.8% MoM from 0.3% printed in September.

Technical Analysis:

- GBP/CHF is extending break above 21-EMA and 20-DMA resistance

- Momentum is bullish, Stochs and RSI have turned higher, Stochs show bullish rollover from oversold levels

- GMMA indicator shows near-term moving averages have turned bullish on the daily charts

- MACD confirms a bullish crossover on the signal line, adding to the upside bias 

Major Support and Resistance Levels:

Support - 1.2455 (21-EMA), Resistance - 1.2537 (55-EMA)

Summary: GBP/CHF was trading with a slight bullish bias. Scope for test of 55-EMA at 1.2537. UK CPI data in focus for impetus.