In our previous analysis GBPUSD: Cable`s Downtrend Resumption the main count expected Cable to make new lows, Cable unfolded as expected and targets were reached and exceeded locking in 139 pips in profit.
It is worth mentioning that recent declines brought Cable to a level that has not been visited for the past 7 years.
This week`s main count expects Cable to unfold upwards to complete a C wave and in the process completing the higher degree fourth wave.
The alternate count expects that Cable`s upwards correction has ended abruptly and that Cable is getting ready to resume its downtrend.
As always we will wait for either counts confirmation point to be reached to determine the highly probable count.
Main Count
- Invalidation Point: 1.4173
- Confirmation Point: 1.4368
- Downwards Targets: 1 .4396 -- 1.4455 -- 1.4522
- Wave number: c pink
- Wave structure: Motive
- Wave pattern: Impulse/Ending diagonal
Alternate Count
- Invalidation Point: 1.4368
- Confirmation Point: 1.4173 -- 1.4079
- Downwards Target: 1.3734
- Wave number: 5 blue
- Wave structure: Motive
- Wave pattern: Impulse/Ending diagonal
Main Wave Count
This count expects that primary wave C maroon is unfolding towards the downside.
Within wave C maroon intermediate waves (1) and (2) black are complete and intermediate wave (3) black is unfolding downwards.
Within intermediate wave (3) black it is expected that minor waves 1 through 3 blue are complete and that wave 4 blue is unfolding upwards.
Wave 1 blue unfolded 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 3 blue unfolded as an impulse labeled waves i through v pink.
Wave i pink unfolded as an impulse labeled waves (i) through (v) green.
Wave iii pink unfolded as an impulse labeled waves (i) through (v) green.
Within wave 4 blue it is likely that waves a and b pink are complete and that wave c pink is unfolding upwards.
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 above 1.4363.
At 1.4396 wave c pink would reach 0.786 of wave a pink and at 1.4455 wave c pink would reach equality with wave a pink and the final target is at 1.4522 as at that level wave 4 blue would reach 0.382 of wave 3 blue.
This count would be invalidated by movement below 1.4173 as within wave c pink no second wave may retrace more than 100 % the length of its first wave.
Alternate Wave Count
The only difference between both main and alternate counts is within the subdivisions within wave c pink within wave 4 blue.
This count expects that wave c pink is complete and that wave 5 blue has started unfolding downwards.
This count would be initially confirmed by movement below 1.4173 and the final confirmation point is at 1.4079.
At 1.3734 wave 5 blue would reach 0.618 of wave 1 blue and we will be able to refine that target once wave 5 blue starts subdividing downwards.
This count would be invalidated by movement above 1.4368 as within wave 5 blue no second wave may retrace more than 100 % of its first wave.
We may also wish to keep an eye on the daily update GBP USD Forecast.
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