FxWirePro: GBP/CHF struggles at daily cloud and 110-EMA resistance, BoE Interest Rate decision eyed for impetus

Chart - Courtesy Trading View 

GBP/CHF was trading largely muted at 1.1240 at around 11:50 GMT, finds stiff resistance at daily cloud and 110-EMA.

Price action was extending trace in Horizontal Channel pattern and bounce off 200-DMA has likely found rejection below cloud.

Back-to-back Doji formations on the daily candles suggests upside exhaustion in the pair, further upside only on decisive break above cloud.

The British pound under pressure as banking turmoil clouds rate outlook. Jeremy Hunt's spring budget earlier this week, in which the UK finance minister said the economy would avoid recession this year failed to impress.

Traders attach a strong chance the Bank of England (BoE) would leave UK rates unchanged when it meets next week, with the possibility of a rise of just 25 basis points (bps).

The Pound Sterling is hit by the BOE survey findings which showed that the median UK public's expectations for inflation for the coming year dropped sharply in February.

This reaffirms bets that the Bank of England (BoE) will pause its rate-hiking cycle next week and contributes to capping the GBP/CHF pair.

Support levels - 1.1217 (55-EMA), 1.1188 (21-EMA)

Resistance levels - 1.1273 (110-EMA), 1.1334 (200-DMA)

Summary: GBP/CHF finds stiff resistance at 110-EMA and daily cloud, further gains only on break above.