Looking at the weekly time frame graph, you can see that the GBP/CHF pair is moving sideways in the range from 1.16000 to 1.22000 throughout this year. At the beginning of the year, the pair made a lower low compared to the previous low, but by no means manages to make it now higher high to get out of the bearish scenario. For minimal confirmation of the bullish scenario, we need a break above the moving average of MA50, to begin with. Weekly, moving averages can be of great help to us in determining trend movements.
On the daily time frame, we see that the GBP/CHF pair is in the middle of the channel and that it is testing all three moving averages MA50, MA100, and MA20, that the GBP/CHF pair is still undecided in which direction it will go. Both bearish and bullish scenarios are plausible technically.
We see a falling channel in the four-hour chart with some pullback due to various political statements regarding Brexit. By setting the Fibonacci level, we see that the GBP/CHF pair first bounced back from 61.8%, so it fell again and that now again there is a possibility to climb to the same level at .20000. Another view is that the GAP that was made at the opening of the market is closed and that we are going down to 1.180000 again, and maybe lower.
Boris Johnson rejected the extension of the deadline for reaching a trade agreement after Brexit until 2021 due to the stalemate in the negotiations and the growing crisis in Covid. The Prime Minister said that his position was “unchanged” and that Great Britain would “cope with all the difficulties” it encountered. Negotiations between the UK and the EU are continuing, with nine days left to reach and ratify any agreement.
EU chief negotiator Michel Barnier is expected to update diplomats from the bloc’s 27 member states later on Tuesday, although there are no signs of an imminent breakthrough. EU sources said there remained points about member states’ access to British fishing waters, competition rules, and how any agreement would be enforced and disputes resolved.
- Trading Instrument
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