CHFGBP unable to break through key resistance level
Swiss Franc/British Pound (CHFGBP) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, CHFGBP ended Thursday at 0.8506 losing 108 pips (-1.25%). Trading 78 pips higher after the open, CHF/GBP was unable to hold its gains as the bears took control ending the day below its opening price. Closing below Wednesday's low at 0.8533, the currency confirmed its breakout through the prior session low after trading up to 32 pips below it intraday.
Daily Candlestick Chart (CHFGBP as at Mar 26, 2020):
Thursday's trading range has been 191 pips (2.22%), that's slightly above the last trading month's daily average range of 169 pips. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently notably higher than usual for CHFGBP.
One bearish candlestick pattern matches today's price action, the Black Candle.
Unable to break through the key technical resistance level at 0.8663 (R1), the market closed below it after spiking up to 0.8692 earlier during the day. The failure to close above the resistance could increase that levels significance going forward. When prices bounced off a significant resistance level the last time on March 6th, CHFGBP actually gained 0.83% on the following trading day. After having been unable to move lower than 0.8533 in the previous session, the pair found buyers again around the same price level today at 0.8501.
The trend is clearly bullish, showing an intact uptrend in the short, medium and long-term.
Among the eight market conditions that our pattern recognition engine identified today, the statistics for the OHLC Patterns based market condition "Black Candle" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for CHF/GBP. Out of 555 times, CHFGBP closed higher 51.71% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 48.11% with an average market move of 0.15%.