In the recent analysis of GBPCHF, I pointed out on potential re-test from top of bullish impulse from H4 chart. Its stop level was predicted at 1.25. but the correction was deeper and reached 1.2440, which proved to be supportive.

Analyzing the situation on daily chart you can see breaking of 1.2500 level and the upper limit of the triangle formation. After this breakout, there was a two-day retreat to the aforementioned support at 1.2440.

In turn yesterday’s session pointed to return of bulls, because price again came back above resistance levels. Currently 1.25 is again supportive and if buyers are able to hold above, it is expected that price will test last week’s maxima at 1.2590. In case of breaking them the odds should go to the key resistance at 1.2640.

Alternatively, the downward movement and closing of the daily session both under support at 1.25 and 1.2440 would mean a change in pro-growth sentiment to neutral.

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