GBPCHF rises to highest close since December 31, 2019
British Pound/Swiss Franc (GBPCHF) Technical Analysis Report for Feb 14, 2020 | by Techniquant Editorial Team
Moving higher for the 5th day in a row, GBPCHF ended the week 1.73% higher at 1.2815 after gaining 40 pips (0.31%) today on low volume. Today's close at 1.2815 marks the highest recorded closing price since December 31, 2019. Closing above Thursday's high at 1.2793, GBP/CHF confirmed its breakout through the prior session high after trading up to 26 pips above it intraday.
Daily Candlestick Chart (GBPCHF as at Feb 14, 2020):
Friday's trading range has been 66 pips (0.52%), that's below the last trading month's daily average range of 86 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly above the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for GBPCHF.
One bullish candlestick pattern matches today's price action, the White Candle.
Buyers managed to take out the key technical resistance level at 1.2786 (now S1), which is likely to act as support going forward.
With another close above the upper Bollinger Band, prices are confirming their strong upward momentum in the short-term. A drop back into the Bollinger Band on the next trading day although might signal a potential change in momentum that could lead to a correction back down towards the center of the Bollinger Bands at 1.2669.
The forex pair shows strength in the short-term supported by its long-term uptrend with only the medium-term trend being bearish.
With prices trading close to this year's high at 1.2844, upside momentum might speed up should the pair be able to break out to new highs for the year.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Price broke through Technical Resistance R1" stand out. Its common bullish interpretation has been confirmed for GBP/CHF. Out of 346 times, GBPCHF closed higher 53.18% of the time on the next trading day after the market condition occurred.
With five out of the seven Major FX Pairs closing lower today, the ones that stand out on the negative side are USDCAD losing -0.12% and EURUSD closing -0.08% lower. On the flipside the best performers have been USDCHF closing 0.28% higher and GBPUSD gaining 0.02%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been USDSEK surging 0.51% and EURSEK closing 0.43% higher. The worst performers of the day have been EURHUF tanking -0.65% and USDHUF closing -0.58% lower. Read more