FxWirePro: GBP/CHF extends gains to retake 1.26 handle, pound ignores weak UK CPI data

GBP/CHF chart - Trading View 

GBP/CHF was trading 0.35% higher on the day at 1.2598 at around 12:50 GMT.

The pair paused 4 straight session's of downside and edged higher despite an unexpected fall in UK inflation data.

Data released by the UK Office for National Statistics (ONS) showed UK headline consumer inflation rose 2% YoY in July. 

This marked a notable deceleration from the 2.5% recorded in June and also missed market expectations for a reading of 2.2%.

Sterling was largely muted to the data as investors judged the reading could be a blip and was unlikely to alter the rising trend for inflation.

Earlier this month the BoE said it expected to tighten monetary policy moderately over the next three years and investors expect data would not sway BoE policymakers much.

Technical indicators do not provide a clear directional bias. Price action hovers around 200-week MA. 

200-DMA at 1.2501 is strong support on the downside. On the flipside, breakout above daily cloud required for any meaningful upside.