After a higher degree impulse had unfolded in red wave 1), pair since then made an overlapping price development, which could be identified as a corrective flat pattern. A flat pattern is a 3-3-5 formation pattern, labeled A-B-C that generally moves sideways. Currently we see price in the final leg C of this probable flat pattern, which could still reach for more weakness towards the 161.8 Fibonacci ratio, from where a new reversal higher may occur.

USD/CHF, 1H