I am looking for the GBPCHF to bounce somewhere near the 1.2000 handle and make a run above 1.3850 for a C wave that could complete a three wave move up for a of Y. This would be followed by a 3 wave pullback before another leg up to complete the Y wave.
With this count I am looking for a deeper correction of a 5 wave move down that is seen on a weekly chart. This 5 wave move down occurred from July 2007 to Aug. 2011. The correction to this 5 wave move down has been shallow at best so a deeper upside correction toward 1.8000 and the previous wave 4 high is possible.
IF the correction to the 5 wave move down is complete then the C wave move up I am looking for could be a wave 2 with wave 1 replacing what I have labeled as wave X.
I am also showing a correlation chart below of the GBPCHF and the USDCHF. As you can see they are pretty correlated. If the USDCHF count I have is correct, I am expecting the USDCHF to move higher with 5 waves up from the low already completed. A 3 wave pullback is also in progress and should be completed soon with a 3rd wave up comping in the near future.
GBPCHF Daily Elliott Wave Count
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GBPCHF Daily Elliott Wave Count
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GBPCHF - USDCHF Correlation Chart
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| GBPCHF - USDCHF Correlation Chart |