I am the looking at GBPCHF in the forex opportunities section. The opportunity suggests a potential long trade. But macro score suggests CHF is outpacing GBP. The other indicators all show GBP as the stronger currency. Just wondering if I can get clarity on how to interpret that.
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So for me GBPCHF has been going down for the past 3 weeks or so. The macro currency strength indicator is showing that both pairs are currently on the strong side. This would suggest that this pair will need more time for the macro agree with your analysis. For me the macro score always has to be on my side before I look at taking the trade. You have 7 things to be watching:
Macro Currency Strength Meter
GDP Differential Indicator
Trade Analysis (Imports/Exports)
Interest Rate Differentials
Domestic Stock Market Analysis
Hedge Fund Positioning
Price Trends
The don't have to all agree at the same time, you should have at least 4 out of 7 agreeing. But the macro strength should always agree with your analysis. Once you have the majority agreeing you go to your price trend.
That's my take but I would be curious to hear from the real pros 🙂