FxWirePro: GBP/CHF on verge of major resistance breakout, stronger UK CPI boosts BoE rate hike bets

Chart - Courtesy Trading View 

GBP/CHF was trading 0.33% higher on the day at 1.2551 at around 11:27 GMT, after closing 0.16% higher in the previous session.

Stronger UK CPI strengthened the case for additional rate hikes this year by the Bank of England and provided an additional boost to the major.

Data released earlier today showed UK consumer inflation rose at the fastest annual pace in nearly 30 years in January. UK headline CPI edged higher to 5.5% YoY rate from 5.4% previous.

Brexit uncertainties capped gains. Tensions over the Northern Ireland Protocol held back traders from placing aggressive bullish bets.

Technical bias is bullish. GMMA indicator shows major and minor trend is bullish. Volatility is high and rising. 

Momentum is bullish. RSI has edged above 60 mark. Major moving averages are trending higher.

Support levels - 1.2521 (5-DMA), 1.25, 1.2479 (21-EMA)

Resistance levels - 1.2548 (converged 200-DMA and major trendline), 1.2587 (Upper BB), 1.26

Summary: GBP/CHF is trading with a bullish bias. Watch out for decisive breakout above 200-DMA for further gains.