GBP/USD yesterday traveled 309 pips lower and 2 targets were viable at 1.2488 and 1.2405. Both targets achieved destinations easily. But GBP/USD dropped another 81 pips into the stratosphere. Now what and where was GBP/USD heading below 1.2405.

The strategy is look to the next lowest pair and the only low pair to GBP/USD is GBP/CHF. GBP/CHF began its trade life at 1.2290's against a big break point at 1.2250. GBP/CHF eventually broke below 1.2250 and this break allowed GBP/USD to trade 81 pips lower.

GBP/USD lows had to evaluate against GBP/CHF highs. While GBP/USD traded 300 pips, GBP/CHF traded 184.

AUD/USD traded 189 pips yesterday while AUD/CHF dropped 74 pips. USD/CAD 155 pips to CAD/CHF 79 pips.

Without the break below of all currency pairs as GBP/CHF,CAD/CHF,  AUD/CHF, NZD/CHF, EUR/CHF then GBP/USD, EUR/USD, AUD/USD, NZD/USD would've never traded to such great distances. The CHF currencies would've stopped anchor pairs at a dead stop at the CHF highs.

The import to CHF pairs is anchor pairs are never allowed for exchange rates to  cross below. GBP/USD for example can't ever trade below GBP/CHF nor can GBP/CHF trade above GBP/USD. Same situation for all CHF pairs to anchor pairs.

Without CHF pairs in the universe mix then anchor pairs would trade enormous distances and far more than yesterday's GBP/USD 300 pips. CHF currencies serves its FX  purpose as the rescue currency to stop movements.

Each currency pair in the exchange rate universe serves its purpose as masters of their own ranges. Its their own domain and this domain is protected by each currency pair in the mix as each currency provides a check against the next currency. No currency pair in the universe is allowed to cross above or below another.

The glue that holds curency pair  ranges together are averages but averages must be correct. Refrain from the closing price as I've seen others use lately.

The more permanent glue to hold currency prices together is the broker  platform. What is a platform? A big giant Statistic. Every platform in every nation and on every continent knew exactly for GBP/USD to dead stop at 1.2324.

Today's CHF pairs are dead to trade as all lack ranges for a viable trade. The message is long anchor pairs as CHF pairs won't move far today. The only direction is up to support anchor pair rises.

Trading currencies and other financial instruments carries a degree of loss and possible loss of entire investments. Please managed your own risks, stop loss, and margins requirements.

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