Forex Market: GBP/CHF trading outlook for April 25th

Friday’s trade saw GBP/CHF within the range of 1.3958-1.4123. The pair closed at 1.4097, surging 0.92% on a daily basis. It has been the 15th gain in the past 23 trading days, a 6th consecutive one and also the steepest one since February 1st, when the pair went up 0.97%. The daily high has been the highest level since March 15th, when a high of 1.4144 was registered. In weekly terms, GBP/CHF added 2.64% to its value during the current week. It has been the 6th gain in the past 16 weeks, a second consecutive one and also the sharpest one since the week ended on July 19th 2015, when it advanced 2.90%. The minor pair has appreciated 2.06% so far during the current month, following four successive months of decline. In March the pair went down 0.60%.

No relevant macroeconomic reports and other events, which may influence GBP/CHF trading, are scheduled on Monday (April 25th).

Correlation with other currency pairs

Taking into account the business week ended on April 22nd and the daily closing levels of the currency pairs involved, we come to the following conclusions in regard to the strength of relationship:

GBP/CHF to GBP/BGN (0.9352, or very strong)
GBP/CHF to USD/CHF (0.9214, or very strong)
GBP/CHF to USD/JPY (0.9086, or very strong)
GBP/CHF to GBP/USD (0.6084, or strong)
GBP/CHF to USD/CAD (-0.4740, or moderate)
GBP/CHF to AUD/USD (-0.5563, or strong)
GBP/CHF to NZD/USD (-0.7077, or strong)
GBP/CHF to EUR/USD (-0.8384, or very strong)

1. During the examined period GBP/CHF moved strongly in one and the same direction with GBP/USD.

2. GBP/CHF moved strongly in the opposite direction compared to AUD/USD and NZD/USD during the week.

3. GBP/CHF moved almost equally in one and the same direction with USD/JPY, USD/CHF and GBP/BGN during the period in question. This relationship has been the most pronounced between GBP/CHF and GBP/BGN.

4. GBP/CHF moved almost equally in the opposite direction compared to EUR/USD during the week.

Daily and Weekly Pivot Levels

By employing the traditional calculation method, the Monday pivot levels for GBP/CHF are presented as follows:

Central Pivot Point – 1.4059
R1 – 1.4161
R2 – 1.4224
R3 – 1.4326

S1 – 1.3996
S2 – 1.3894
S3 – 1.3831

By using the traditional method of calculation again, the weekly pivot levels for GBP/CHF are presented as follows:

Central Pivot Point – 1.3959
R1 – 1.4261
R2 – 1.4425
R3 – 1.4727

S1 – 1.3795
S2 – 1.3493
S3 – 1.3329