GBPCHF is trending higher inside an ascending channel and is currently pulling back to the mid-channel area of interest around 1.1400. A larger pullback could reach the channel support at 1.1300.

If any of these hold as a floor, the pair could resume the climb to the swing high near the channel top at 1.1500. Technical indicators are mostly pointing to a continuation of the uptrend.

The 100 SMA is above the 200 SMA to indicate that the path of least resistance is to the upside or that the climb is more likely to gain traction than to reverse. The gap between the indicators is also widening to reflect strengthening bullish momentum while the 100 SMA appears to be holding as dynamic support.

Stochastic is already indicating oversold conditions or exhaustion among sellers, so turning higher would mean a return in bullish pressure. However, RSI has some room to head south before reaching the oversold region, so price could follow suit while sellers are in control.

GBPCHF would likely take cues from the BOE decision later today, as the central bank is widely expected to announce another 0.25% hike and leave the door open for more tightening.

An even larger interest rate hike or more MPC members voting for tightening could mean more upside for the British pound since this would likely keep the central bank in a hawkish stance for the coming months.

Earlier this week, the UK economy printed another upside surprise in CPI, which suggests that the central bank would do more in order to ward off inflation. Headline CPI held steady at 8.7% instead of dipping to the projected 8.4% figure.

Meanwhile, the SNB just announced a 0.25% interest rate hike in today’s policy decision, as the central bank is also keen on keeping price pressures in check.