FxWirePro: GBP/CHF rebounds from 10-week lows, finds strong support at 200-week MA

GBP/CHF chart - Trading View

GBP/CHF has shown a solid rebound from fresh 10-week lows at 1.2594 and was trading 0.42% higher on the day at 1.2651 at around 10:55 GMT.

The pair has erased most of the previous sessions' losses after downside found strong support at 200-week MA.

The main event of the trading week will be the Bank of England's (BoE) interest rate decision due Thursday at 16:30 GMT.

Focus will be on whether policymakers are ready to talk about tapering asset purchases. Any hint of taper announcement would be a major shift in policy and could boost the British pound.

Pullback in price action has currently held support within the daily cloud. Breach below could drag the pair lower. 

Technical analysis does not support major weakness in the pair. Price action is attempting break above 55-EMA resistance at 1.2672. 

Series of resistance align till  1.2712. Break above will confirm upside resumption. Retest of yearly highs at 1.3073 likely.