GBP/CHF Down 95 Pips, Crosses 20 Day Moving Average; in a Downtrend Over Past 90 Days

GBP/CHF Price Recap

GBP/CHF enters today at 1.25938 in US dollars, down 95 pips (0.75%) from the day prior. The price move occurred on stronger volume, as measured by the number of tick price changes; specifically, yesterday’s volume was up 8.07% from the day prior, and up 159.67% from the same day the week before. Out of the 40 instruments in the Forex asset class, GBP/CHF ended up ranking 37th for the day in terms of day-over-day price change. Let’s take a look at price chart of GBP/CHF.

GBP/CHF Technical Analysis

Moving average crossovers are always interesting, so let’s start there: GBP/CHF crossed below its 20 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 20 day average, which is 78.5 pips away. It should be noted, though, the 20 day simple moving average turned downwards, which may be a bearish sign. Trend traders will want to observe that the strongest trend appears on the 90 day horizon; over that time period, price has been moving down. For additional context, note that price has gone up 7 out of 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 8 sell signals. This imputes a buy/sell ratio of 0.75, which is bearish. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

Buy GBPCHF after price pulls back into lower weekly zone. Watch for candlestick price action i.e. rejection/bullish engulfing candlesticks on smaller timeframes before entering buy positions.