The GBP/CHF pair fell during the session on Monday, but as you can see still remains in the same general area that we have been in for some time now. This last week has been very back and forth, with nothing to move the pair in one direction or the other. After all, it is a very risky sensitive pair, and right now risk is essentially going back and forth as nobody really understands what’s going on in the fundamental direction of the global economy at the moment.
As you can notice, the 1.4750 level seems to be the magnet for price at the moment, but what I find most interesting is the fact that we simply cannot fall either. In other words, it’s almost like there’s a ton of support just below, and as a result I think eventually we will get a nice buying opportunity. That being said, we don’t see it now, and I think that a break of the 1.48 handle on a daily close might be the technical set up that people look for.
50 day exponential moving average
One of the more commonly followed moving averages is the 50 day EMA, and as you can see this is just above current pricing. This of course will be noticed by longer-term traders, and as a result perhaps there is some trepidation about buying. On top of that, we just don’t have the risk appetite right now to move the market in one direction or the other. All one has to do is simply look at the world stock indices, and recognize the fact that even stock traders seem to be missing in action at the moment.
However, the fact that we simply cannot fall does give me hope that the market will eventually break out to the upside. It might take a while, or better yet might even take some type of economic headlines. However, sometimes the markets simply precedes the news. I don’t think that it’s anything nefarious, I just believe that sometimes the market “leans in a particular direction”, and then finds any excuse to keep going. I think that’s what’s happening here.
