GBPCHF finds buyers at key support level
British Pound/Swiss Franc (GBPCHF) Technical Analysis Report for Mar 26, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, GBPCHF finished Thursday at 1.1756 gaining 147 pips (1.27%). Trading up to 104 pips lower after the open, the forex pair managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Wednesday's high at 1.1719, the FX pair confirmed its breakout through the prior session high after trading up to 45 pips above it intraday.
Daily Candlestick Chart (GBPCHF as at Mar 26, 2020):
Thursday's trading range has been 259 pips (2.23%), that's slightly above the last trading month's daily average range of 232 pips. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently strongly higher than usual for GBPCHF.
One bullish candlestick pattern matches today's price action, the White Candle.
After trading down to 1.1505 earlier during the day, GBP/CHF bounced off the key technical support level at 1.1544 (S1). The failure to close below the support could increase that levels significance as support going forward. When prices bounced off a significant support level the last time on March 6th, GBPCHF actually lost -0.82% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Among the seven market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bounced off Technical Support S1" stand out. Its common bullish interpretation has been confirmed for GBP/CHF. Out of 532 times, GBPCHF closed higher 50.00% 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 two trading days, showing a win rate of 53.38% with an average market move of 0.00%.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 2.72% and NZDUSD closing 1.88% higher. On the flipside the worst performers have been USDCHF closing -1.43% lower and USDJPY losing -1.42%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPHKD surging 2.72% and GBPZAR closing 2.65% higher. The worst performers of the day have been USDMXN tanking -4.12% and USDNOK closing -3.12% lower. Read more