Twelve days ago, on October 2nd, we published a forecast, called “GBPCHF to return to 1.53”, where we stated that the pair looks vulnerable. We thought so, because the wave structure of the price action on the hourly chart showed a pattern, called “ending diagonal”, which suggests for a reversal. Below you can see how GBP CHF looked like.
According to the Elliott Wave Principle, the minimum target after a broken ending diagonal is at the level, where the diagonal had started. That is why we assumed that 1.53 should be reached. The next chart shows how the rate has been changing during those 12 days.
As visible, prices not only reached our target, but traveled even lower to 1.5173 as of today. Furthermore, the bears do not seem to be exhausted yet. From now on, the “trailing stop” technique could be used, in order not to exit the trade prematurely.
