GBPCHF closes above its opening price after recovering from early selling pressure
British Pound/Swiss Franc (GBPCHF) Technical Analysis Report for Jun 30, 2020 | by Techniquant Editorial Team
Moving higher for the 2nd day in a row, GBPCHF finished the month -1.01% lower at 1.1748 after gaining 49 pips (0.42%) today on low volume. Trading up to 45 pips lower after the open, GBP/CHF managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Monday's high at 1.1725, the forex pair confirmed its breakout through the prior session high after trading up to 26 pips above it intraday.
Daily Candlestick Chart (GBPCHF as at Jun 30, 2020):
Tuesday's trading range has been 93 pips (0.79%), that's slightly below the last trading month's daily average range of 112 pips. Weekly volatility is also lower, being slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly higher than usual for GBPCHF.
Buyers managed to take out the key technical resistance level at 1.1716 (now S1), which is likely to act as support going forward. The last time this happened on May 28th, GBPCHF actually lost -0.10% on the following trading day.
The trend is clearly bearish, showing an intact downtrend in the short, medium and long-term.
Buying could speed up should prices move above the nearby swing high at 1.1847 where further buy stops might get activated.
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 342 times, GBPCHF closed higher 52.63% of the time on the next trading day after the market condition occurred.
With four out of the seven Major FX Pairs closing higher today, the ones that stand out on the positive side are GBPUSD gaining 0.82% and NZDUSD closing 0.53% higher. On the flipside the worst performers have been USDCAD closing -0.62% lower and USDCHF losing -0.41%. Looking at the other Minor FX Pairs and Crosses, the winners of the day have been GBPZAR surging 1.31% and GBPJPY closing 1.16% higher. The worst performers of the day have been USDNOK tanking -1.51% and EURGBP closing -0.9% lower. Read more