GBP/CHF Up 37 Pips; Crosses 20 Day Moving Average

GBP/CHF Price Recap

After 4 down days, GBP/CHF snaps its streak, rising 37 pips (0.29%) over the past day to close at an exchange rate of 1.26892. The price move occurred on stronger volume, as measured by the number of tick price changes; specifically, yesterday’s volume was up 4.91% from the day prior, and up 72.1% from the same day the week before. Relative to other instruments in the Forex asset class, GBP/CHF ranked 9th yesterday in terms of percentage price change. Here is a price chart of GBP/CHF.

GBP/CHF Technical Analysis

Moving average crossovers are always interesting, so let’s start there: GBP/CHF crossed above 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 50 day average, which is 10 pips away. It should be noted, though, the 20 day simple moving average turned upwards, which may be a bullish sign. Volatility for GBP/CHF has exploded over the past two weeks relative to the past 30 days, which technical traders will want to note. 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 17 out of the past 30 days.

The View From Around the Web

We’re seeing some traders come out with interesting conviction on GBPCHF, with 5 buy signals on our radar and 8 sell signals. This imputes a buy/sell ratio of 0.62, which is bearish. As for the rationale, technical traders seem to be citing the appearance of channel, fibonacci and relative strength index technical patterns. Here’s a piece we found on tradingview.com; below is a short snippet from it to give you a taste.

This is good time to buy since Doji gave us a hint and bounce from channel uptrend. Let’s get in before it’s too late. Thumb up. Hint: Stop loss should be below from Doji. Tp… that is up to you. Thumb up