Hi traders, GBPCHF has been trading in a tight range but its price action makes Elliott Wave sense. After a strong impulse decline in wave A, a three-wave correction is expected before the bearish continuation.
This correction seems to be taking the shape of the Elliott Wave 3-3-5 expanded flat correction pattern. Price made a three-wave rally in the circled wave a, and another three-wave decline in circled wave b.
Pink wave (b) unfolded as a triangle which makes the circled wave "b" decline a complete zigzag correction. If this count is correct, the price is expected to resume higher in five-wave in red wave B.
However, the price can be making an A-B-C-D-E triangle which means the expected rally might not breach circled wave "b" high.