By: Mike Kulej
The British Pound/Swiss Franc has been in one of the longest and most persistent trends of recent years. This pair, together with the EUR/CHF, started a downtrend during the financial panic of 2008 and is still moving lower.
Just last week the GBP/CHF made yet another all time low, this time falling to 1.3260. That was followed by a rally to 1.3695, the largest advance for this pair since March. While it might look that the trend could be changing, so far it is only a correction within the downtrend.
In order to confirm a reversal on the daily chart, the GBP/CHF would have to get either above the most recent high or the trendline, or both. So far, neither happened, the latest high remains 260 pips away while the trendline is further still. Even the candlestick pattern around is not high a probability bullish reversal.
The ADX indicator is also in agreement with the trend. Its reading remains high, indicating a healthy down trend. It is entirely possible that the GBP/CHF may be reversing, but so far, neither indicators nor the price action confirmed that.