Cable popped to a higher high before reversing gears in line with the ongoing corrective structure we have been tracking.
Even though the euro moved above the confirmation point of the previous main count, the shape and behavior of the overall movement doesn’t really support the immediately impulsive pattern that was expected.
Fortunately, only a very minor adjustment was required for everything to make sense again, and this is what we present in today’s analysis.
It appears that the currently-unfolding, upward-facing third wave is subdividing into a series of extensions. If this appearance is a true reflection of underlying market intent, 2020 should kick off with a massive bang.
As expected the euro moved toward the upside, in a rally so consistently strong that, not only did it make a clean break above the resistance at 1.1179, but is aggressively testing levels it had not touched in a couple of months.
Whether this rally will continue uninterrupted as a solid third wave or it will subdivide into an extension is still unclear.
At any rate, unless my count is completely incorrect, the euro is set for a wild ride and planning to start 2020 with a bang.
In the previous analysis, we set targets starting from 1.3139. Cable tagged that first target and we will discuss below whether the bounce has run its course.
Cable traded on up as anticipated and both targets were reached. The focus remains on up till Cable shows any sign of weakness as we will discuss shortly.
The post above the hourly count’s invalidation point lends credence to the idea that a counter-trend advance has started.
As always we will wait for the hourly count confirmation point to be reached to gain confidence in this outlook.
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I said it yesterday and, by God, I’ll say it again: Merry Christmas, everyone!
Markets were closed today, so I’m taking this opportunity to quickly introduce an alternate hourly count that I’ve been meaning to mention for a few days now.
This alternate count only comes into effect if the invalidation point of the main count is breached. It doesn’t imply a full change in price direction, but merely a very minor and temporary period of stagnation.
Merry Christmas, everyone!
The euro has been practically standing still, which isn’t much of a surprise during holiday seasons. For all intents and purposes, our main count remains exactly the same.
GBPUSD continued to decline and the confirmation point was never reached to suggest that the five-wave decline we have been tracking is complete.
The first target for wave (2) black (on the daily chart) was reached and we will continue to favor the downside until Cable shows signs of strength.
As always we will wait for the hourly count confirmation point to be reached to gain confidence in this outlook. To recap, as a side note, pay attention to the upper boundary of the impulse channel on the hourly chart.
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