After SNB decided to drop the 1.2000 EUR/CHF floor the price action on CHF crosses has been distorted however we can still find a way to guide us through the current mess by simple using support and resistance level and the box trading ranges (see Figure 1). GBP/CHF as being a cross pair has a lot of tendency to consolidate and we can find more often it's moving inside this range boxes. Usually if we have this type of boxes on the left side of the chart we can see how by simple using those boxes and project them to the right can give us a road map.

Major Levels to watch:
  • 1.5000 Big round number and psychological number, support level;
  • 1.5500 Big round number and psychological number, Resistance Level
  • 1.5600 Top of current projected trading range;

Figure 1. GBP/CHF Weekly chart.

Right now based on the Elliott Wave count (see Figure 2) we can tell that if we count the waves from the 1.1900 bottom we're in the last stage of completing 5 waves cycle. Right now we're in wave 4 of V. We can either have a new marginal high or no new high at all, but past price action suggest this should be an consolidation top.

Figure 2. GBP/CHF Daily Chart
Based on the Elliott Wave and my projections we should see an exchange rate for GBP/CHF of 1.5098 for 1st of October 2015

Best Regards,
Daytrader21
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