CHFGBP breaks below key technical support level
Swiss Franc/British Pound (CHFGBP) Technical Analysis Report for Sep 16, 2020 | by Techniquant Editorial Team
Moving lower for the 3rd day in a row, CHFGBP ended Wednesday at 0.8480 losing 63 pips (-0.74%). Closing below Tuesday's low at 0.8532, the market confirmed its breakout through the previous session low after trading up to 66 pips below it intraday.
Daily Candlestick Chart (CHFGBP as at Sep 16, 2020):
Wednesday's trading range has been 95 pips (1.11%), that's above the last trading month's daily average range of 73 pips. Weekly volatility is also higher, being slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently higher than usual for CHFGBP.
One bearish candlestick pattern matches today's price action, the Black Candle.
After trading down to 0.8466 earlier during the day, the FX pair bounced off the key technical support level at 0.8466 (S1). The failure to close below the support could increase that levels significance as support going forward. Prices broke below the key technical support level at 0.8526 (now R1), which is likely to act as resistance going forward. The last time this happened on Monday, CHFGBP lost -0.30% on the following trading day.
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 Support/Resistance based market condition "Price broke through Technical Support S1" stand out. Its common bearish interpretation has been confirmed for CHF/GBP. Out of 334 times, CHFGBP closed lower 53.29% of the time on the next trading day after the market condition occurred.