GBP/CHF Crosses 200 Day Moving Average, in a Downtrend Over Past 14 Days; Price Base in Formation Over Past 30 Days

GBP/CHF Price Recap

GBP/CHF is down 128 pips (1.01%) since yesterday (with its current price near 1.24661), marking the 2nd day in a row it has gone down. The price move occurred on stronger volume, as measured by the number of tick price changes; specifically, yesterday’s volume was up 23.85% from the day prior, and up 103.41% from the same day the week before. Out of the 40 instruments in the Forex asset class, GBP/CHF ended up ranking 36th for the day in terms of day-over-day price change. The price chart of GBP/CHF below illustrates.

GBP/CHF Technical Analysis

Moving average crossovers are always interesting, so let’s start there: GBP/CHF crossed below its 200 day moving average yesterday. As for the alignment of the moving averages, well, it’s a bit mixed up; the 20, 50, 100, and 200 do not progress from largest to smallest, or vice versa. The closest is the 200 day average, which is 39.8 pips away. Trend traders will want to observe that the strongest trend appears on the 14 day horizon; over that time period, price has been moving down. Price action traders in particular will want to note that the 30 day period appears to show price forming a base; this could indicate that a support/resistance level is developing. For additional context, note that price has gone up 7 out of the past 14 days.

A final note on correlations: in the recent most week, the currency pair bearing the strongest correlation to GBP/CHF has been GBP/JPY — a common occurrence, given the presence of GBP in both currency pairs. Alternatively, regarding pairs with the lowest correlation to GBP/CHF? Well, that belongs to EUR/GBP over the past 14 days.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on GBPCHF, with 6 buy signals on our radar and 5 sell signals. This imputes a buy/sell ratio of 1.2, which is neutral. As for the rationale, technical traders seem to be citing the appearance of a wedge technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

– Re-test of the previous resistance structure – Buying the descending trend-line….- Buying support zone has been slightly violated….If you found this idea useful, leave a like and follow me for more analysis and trading signals.