- The GBPCHF pair has been in a downtrend since the beginning of October, when it reached a high of 1.1235². Since then, it has been making lower highs and lower lows, forming a descending channel on the 4-hour chart³.
- The pair recently broke below the 50-period exponential moving average (EMA) and the 1.1100 support level, indicating a bearish momentum. The 50 EMA is now acting as a dynamic resistance, while the lower boundary of the channel is providing a potential target for the bears.
- The pair is also trading below the 200-period simple moving average (SMA), which is another sign of a long-term bearish trend. The 200 SMA is currently around 1.1150, which coincides with the 61.8% Fibonacci retracement level of the last major swing up from 1.0985 to 1.1235². This level could act as a strong resistance if the pair attempts a pullback.
- The relative strength index (RSI) is hovering around the 30 level, indicating that the pair is oversold. However, this does not necessarily mean that a reversal is imminent, as the RSI can remain in the oversold or overbought territory for a prolonged period of time during a strong trend. A break above the 50 level would be needed to signal a possible change in the momentum.
- The stochastic oscillator is also in the oversold zone, but it has not yet crossed above the 20 level, which would indicate a bullish divergence. A bullish divergence occurs when the price makes a lower low, but the stochastic makes a higher low, suggesting that the selling pressure is weakening. A bullish divergence could be a sign of a potential reversal or a correction.
- The MACD histogram is negative and below the zero line, confirming the bearish bias. The MACD line and the signal line are also below the zero line and moving further apart, indicating an increase in the bearish momentum. A bullish crossover of the MACD line and the signal line above the zero line would be needed to signal a possible shift in the trend.
In conclusion, the GBPCHF pair is in a bearish trend, and the technical indicators suggest that the trend is likely to continue. The pair could face some resistance around 1.1100 and 1.1150, but the overall outlook is bearish. The pair could target the lower boundary of the channel, which is currently around 1.1000, or the next support level at 1.0985. A break above 1.1200 would invalidate the bearish scenario and indicate a possible reversal.
Source: Conversation with Bing, 10/11/2023
(1) GBP CHF Chart - Investing.com. www.investing.com/cu...ncies/gbp-chf-chart.
(2) GBP to CHF — Pound to Swiss Franc Rate — TradingView. www.tradingview.com/symbols/GBPCHF/.
(3) 1.00 GBP is equal to 1.10 CHF. bing.com/search?q=gbpchf+c...
(4) GBPCHF Chart - Live Forex Rate - Live Charts. www.livecharts.co.uk...exCharts/gbpchf.php.
(5) British Pound to Swiss Franc Exchange Rate Chart | Xe. www.xe.com/currencycharts/?from=GBP&a...
(6) GBP/CHF Price Chart & Exchange Rate History - eToro.. www.etoro.com/markets/gbpchf/chart.
- The pair recently broke below the 50-period exponential moving average (EMA) and the 1.1100 support level, indicating a bearish momentum. The 50 EMA is now acting as a dynamic resistance, while the lower boundary of the channel is providing a potential target for the bears.
- The pair is also trading below the 200-period simple moving average (SMA), which is another sign of a long-term bearish trend. The 200 SMA is currently around 1.1150, which coincides with the 61.8% Fibonacci retracement level of the last major swing up from 1.0985 to 1.1235². This level could act as a strong resistance if the pair attempts a pullback.
- The relative strength index (RSI) is hovering around the 30 level, indicating that the pair is oversold. However, this does not necessarily mean that a reversal is imminent, as the RSI can remain in the oversold or overbought territory for a prolonged period of time during a strong trend. A break above the 50 level would be needed to signal a possible change in the momentum.
- The stochastic oscillator is also in the oversold zone, but it has not yet crossed above the 20 level, which would indicate a bullish divergence. A bullish divergence occurs when the price makes a lower low, but the stochastic makes a higher low, suggesting that the selling pressure is weakening. A bullish divergence could be a sign of a potential reversal or a correction.
- The MACD histogram is negative and below the zero line, confirming the bearish bias. The MACD line and the signal line are also below the zero line and moving further apart, indicating an increase in the bearish momentum. A bullish crossover of the MACD line and the signal line above the zero line would be needed to signal a possible shift in the trend.
In conclusion, the GBPCHF pair is in a bearish trend, and the technical indicators suggest that the trend is likely to continue. The pair could face some resistance around 1.1100 and 1.1150, but the overall outlook is bearish. The pair could target the lower boundary of the channel, which is currently around 1.1000, or the next support level at 1.0985. A break above 1.1200 would invalidate the bearish scenario and indicate a possible reversal.
Source: Conversation with Bing, 10/11/2023
(1) GBP CHF Chart - Investing.com. www.investing.com/cu...ncies/gbp-chf-chart.
(2) GBP to CHF — Pound to Swiss Franc Rate — TradingView. www.tradingview.com/symbols/GBPCHF/.
(3) 1.00 GBP is equal to 1.10 CHF. bing.com/search?q=gbpchf+c...
(4) GBPCHF Chart - Live Forex Rate - Live Charts. www.livecharts.co.uk...exCharts/gbpchf.php.
(5) British Pound to Swiss Franc Exchange Rate Chart | Xe. www.xe.com/currencycharts/?from=GBP&a...
(6) GBP/CHF Price Chart & Exchange Rate History - eToro.. www.etoro.com/markets/gbpchf/chart.