After strong increases on GBPCHF and reaching significant resistance, there was a downward correction, as I had predicted in yesterday’s analysis. Yesterday’s data from the British labor market led to confusion, and even a short breaking of 1.2710, but soon after that the pair returned to their former place, and then began to dive. We currently have two scenarios.
If we look closely at the graph, it can be seen that although there was a downward correction after strong increases from Monday, the bears have already lost their momentum. It is possible that during the today’s session the resistance will be tested again at 1.2710. In the case of the next rebound, you will be able to consider opening a short position with the target at 1.2465 and returning to a wider downward trend.
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However, if there was a permanent breakthrough in the resistance, the next goal for the bulls will be a round barrier at 1.30. This gives potential for increases in the area of 250-280 pips, depending on the moment of entry into the position. In both scenarios, there are over 200 pips to earn.