GBPCHF Up 5 Pips in Last Hour, Moves Down For the 3rd Straight Day; in a Downtrend Over Past 14 Days

Hourly Update

(Last Updated September 23, 2020 0:17 GMT)

At the moment, GBPCHF’s rate is up 5 pips (0.04%) from the hour prior. The hourly chart shows that GBPCHF has seen 2 straight up hours. If you’re a trend trader, consider that the strongest clear trend on the hourly chart exists on the 100 hour timeframe. Most noteworthy in the world of moving averages on the hourly chart is that the 20 hour moving average has been crossed, so that price is now turning above it. The moving averages on the hourly timeframe suggest a choppiness in price, as the 20, 50, 100 and 200 are all in a mixed alignment — meaning the trend across timeframes is inconsistent, indicating a potential opportunity for rangebound traders.

GBPCHF End of Day Recap

Updated 00:30 GMT (04:30 EST)

GBPCHF is down 43 pips (0.36%) since yesterday (opening today near 1.17188), marking the 3rd straight day a decline has happened. Relative to other instruments in the Forex asset class, GBPCHF ranked 27th yesterday in terms of percentage price change. The price chart of GBPCHF below illustrates.

GBPCHF

GBPCHF Technical Analysis

Coming into today GBPCHF is now close to its 20, 50 and 100 day moving averages, which may act as price barrier for the asset. 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 100 day average, which is 177.7 pips away. The clearest trend exists on the 14 day timeframe, which shows price moving down over that time. Also of note is that on a 90 day basis price appears to be forming a base — which could the stage for it being a support/resistance level going forward. Or to simplify this another way, note that out of the past 10 days GBPCHF’s price has gone down 7 them.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on GBPCHF, with 0 buy signals on our radar and 8 sell signals. This imputes a buy/sell ratio of 0, which is quite bearish. As for the rationale, technical traders seem to be citing the appearance of a channel technical pattern. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

Last week we saw price ‘take a breather’ and retrace back up to 1.1825 and then react from a 4H descending trend line, which is now forcing price lower….If we get another break of 1.1690 AND a definite close beneath it, we can only see price continuing down to the lows from March sitting at 1.1250….If price continues to close above 1.1690 this analysis would become invalid.


Forex Frank is a forex analyst and market commentator with nearly two decades of experience in currency trading. Follow him on social media: Facebook | Twitter | Instagram