Cable traded on up as anticipated, exceeding the cited targets. It is early to tell whether the countertrend bounce that we have been tracking has run its course. Therefore, the daily count explores the ongoing corrective bounce scenario, while today’s hourly count focus on the implications of a top being in place. –more–>
Synopsis: A push above 1.2509 will imply that wave iv pink remains in play with resistance around 1.2585. Conversely, a decline through 1.2326 and more importantly, 1.1958 would open the door for lower lows with support around 1.1825 and if exceeded then to 1.1797.
Main Hourly Count
– Invalidation Point: 1.2509
– Confirmation Point: 1.2326 — 1.1958
– Downwards Targets: 1.1825 — 1.1797
– Wave number: (v) pink
– Wave structure: Motive
– Wave pattern: Impulse/Ending diagonal
Elliott Wave chart analysis for the GBPUSD for 16th September, 2019. Please click on the charts below to enlarge.
Main Daily Wave Count
For the long term, this count expects that primary wave B maroon is complete and that primary wave C maroon is unfolding towards the downside likely as an ending diagonal.
Within wave C maroon, waves (1) through (4) black are complete and wave (5) black is underway.
Within wave (5) black, waves A and B blue are complete and wave C blue is in force.
Wave A blue unfolded as a leading diagonal labeled waves i through v pink.
Wave B blue unfolded as a triple zigzag labeled waves w, x, y, x and z pink.
Within wave C blue, waves i through iii pink are complete and wave iv pink is subdividing lower.
Wave iii pink unfolded as an impulse labeled waves (i) through (v) green.
This count would be confirmed by movement above 1.2509.
At 1.2585 wave iv pink would have traveled 0.5 times the length of wave iii pink.
This count would be invalidated by movement below 1.2326 as within wave (c) green no second wave may retrace more than 100 % times the length of its first wave. A decline below that level would suggest that wave (iv) pink is complete and that wave (v) pink has started.
Main Hourly Wave Count
This count explores the possibility that wave iv pink has peaked and that the larger degree downtred has resumed.
Wave (iii) green of wave iii pink unfolded as an impulse labeled waves i through v orange.
Wave iii orange unfolded as an impulse labeled waves 1 through 5 purple.
Wave (iv) green subdivided into a zigzag labeled waves a, b and c orange.
Wave (v) green unfolded as an impulse labeled waves i through v orange.
Wave iv pink unfolded as a zigzag labeled waves (a), (b) and (c) green.
Wave (a) green unfolded as an impulse labeled waves i through v orange.
Wave (b) green unfolding as a triangle labeled waves a through e orange.
This count would be confirmed by movement below 1.2326 and the final confirmation point is at 1.1958.
At 1.1825 wave v pink would have traveled 0.786 times the distance from the start of wave i pink to the end of wave iv pink. At 1.1797 wave v pink would have traveled 1.382 times the length of wave i pink.
This count would be invalidated by movement above 1.2509 as within wave v pink no second wave may retrace more than 100 % times the length of its first wave.