The wide sentiment on GBPCHF is definitely bearish. From mid-April, the pair had been steadily falling south. In the meantime, several corrections occurred, which only stopped the falls for some time. Yesterday’s session ended with the largest in one-day increase in prices from January 17, 2017. The GBPCHF price jumped up by nearly 1.5% and returned to resistance at 1.2710.
The price was in the range between support at 1.2465 and resistance at 1.2710 for a month – from August 10. The bulls for some time tried to stick to the upper limit of this channel, but after a few battle sessions fell and there was a drop to the support area, from where yesterday there was a dynamic bullish rebound and the price returned to resistance.
Much now depends on further Brexit negotiations. From the technical point of view, a downward correction may take place today after such strong rises. You can think about opening the short with the goal at 1.2465, of course only after confirming the resistance. On the other hand, in the case of further increases, they may reach the area around the round level of 1.30.
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