GBPUSD: Cable's Downtrend Resumption

In our previous analysis GBPUSD: Cable`s Short Term Road-map! the main count expected Cable to make new lows, however Cable continued moving downwards and as you are all aware we had that downwards movement under the microscope and have been tracking this downwards movement on a daily basis down to the hourly chart.

With the recent downwards movement Cable has entered an uncharted price territory that has not been visited for the past 5 years.

This week`s main count expects Cable to continue moving downwards while the alternate count expects that Cable has one last push upwards before resuming its downtrend. It is worth mentioning that the alternate count`s target does not provide a practical trading target, however, it should only be used as a guide.

As always we will wait for either counts confirmation point to be reached to determine the highly probable count.

Main Count

- Invalidation Point: 1.4605
- Confirmation Point: 1.4494
- Downwards Targets: 1.4450 -- 1.4355
- Wave number: (v) green
- Wave structure: Motive
- Wave pattern: Impulse/Ending diagonal

Alternate Count

- Invalidation Point: 1.4694 -- 1.4494
- Confirmation Point: 1.4605
- Upwards Targets: 1.4617
- Wave number: (iv) green
- Wave structure: Corrective
- Wave pattern: Double Zigzag

Main Wave Count

This count expects that primary wave B maroon is complete and that primary wave C maroon is unfolding towards the downside.

Within wave C maroon intermediate waves (1) and (2) black might be complete and intermediate wave (3) black has started unfolding downwards.

Intermediate wave (2) black unfolded as a zigzag labeled waves A, B and C blue.

Wave B blue unfolded as a zigzag labeled waves a, b and c pink.

Wave C blue unfolded as an impulse labeled waves i through v pink.

Within intermediate wave (3) black it is expected that minor waves 1 and 2 blue are complete with wave 1 blue unfolding as a leading diagonal labeled waves i through v pink.

Wave iii pink unfolded as a zigzag labeled waves (a), (b) and (c) green.

Wave iv pink unfolded as a zigzag labeled waves (a), (b) and (c) green.

Wave v pink unfolded as a zigzag labeled waves (a), (b) and (c) green.

Minor wave 2 blue was a shallow second wave and it unfolded as a zigzag correction labeled waves a, b and c pink.

Within minor wave 3 blue it is likely that minute waves i and ii pink are complete and that minute wave iii pink has started unfolding downwards.

It should be noted that Cable is starting to exhibit an increase in momentum on the 6 hours chart to support a third wave being underway.

This count would be confirmed by movement below 1.4494.

At 1.4450 wave (v) green would reach 0.618 of wave (i) green and at 1.4355 wave (v) green would reach equality with wave (i) green.

This count would be invalidated by movement above 1.4605 as within wave (v) green no second wave may retrace more than 100 % of its first wave.

Alternate Wave Count

The difference between both main and alternate counts is within the subdivisions of wave (iv) green.

This count expects that wave (iv) green has more to offer upwards.

This count would be confirmed by movement above 1.4605.

At 1.4617 wave (iv) green would reach 0.382 of wave (i) green.

This count would be invalidated by movement above 1.4694 as wave (iv) green may not enter the price territory of wave (i) green and as well this count would be invalidated by movement below 1.4494 as within -a double zigzag- wave (iv) green no X wave may retrace more than 100 % of its W wave.

We may also wish to keep an eye on the daily update GBP USD Forecast.