FxWirePro: GBP/CHF rebounds sharply, pound remains bid ahead of UK no-confidence vote

Chart - Courtesy Trading View 

Spot Analysis:

GBP/CHF was trading 0.47% higher on the day at 1.2067 at around 10:00 GMT

Previous Week's High/ Low: 1.2139/ 1.1971

Previous Session's High/ Low: 1.2080/ 1.2011

Fundamental Overview:

The British pound remains bid as markets await UK confidence vote in PM Johnson.

GBP bulls are cheering the news that a vote of confidence in the UK PM Boris Johnson will be held later in the day between 17:00 GMT- 19:00 GMT.

Markets hope that if Johnson can win the vote of confidence it will end months of speculation and allow his government to focus on other political and economic priorities.

Technical Analysis:

- GBP/CHF has snapped 3 straight week's of downside

- Price action has edged above 5-DMA and hovers around 200H MA

- Major trend however remains bearish, GMMA indicator shows major and minor trend are bearish

- Momentum is bearish and volatility is high raising scope for further downside

Major Support and Resistance Levels:

Support - 1.1933 (Lower BB), Resistance - 1.2118 (21-EMA)

Summary: GBP/CHF recovery lacks traction. Break above 21-EMA could change near-term dynamics.