GBPUSD – Cable: Is The Upwards Correction Mature Yet ?! (8-Nov-2013)

This week the pound unfolded towards the upside as expected and both targets were reached and exceeded.

This week`s main count expects the pound to reverse directions and move towards the downside in an impulsive manner while the alternate count expects further upwards movement.

As always we will use each count`s invalidation point to confirm the other count.

8-Hours Main Count

– Invalidation Point: 1.6118
– Confirmation Point: 1.5903
– Downwards Targets : 1.5775 — 1.5563
– Wave number: 5 maroon
– Wave structure: Motive
– Wave pattern: Impulsive/Ending Diagonal

8-Hours Alternate Count

– Invalidation Point: 1.6247 — 5903
– Confirmation Point: 1.6118
– Upwards Targets : 1.6171 — 1.6174
– Wave number: 5 maroon
– Wave structure: Motive
– Wave pattern: Impulsive/Ending Diagonal

 

Elliott Wave chart analysis for the GBPUSD for 8th November, 2013. Please click on the charts below to enlarge.

Main Wave Count

01-gbpusd08nov13daily1
This count expects that wave 4 maroon is highly likely complete as a triangle labeled waves (A) through (E) black.

Wave (E) black unfolded towards the upside as a zigzag labeled waves A, B and C blue.

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

Wave iii pink unfolded as an impulse labeled waves (i) through (v) green.

Wave iv pink unfolded as a double zigzag labeled waves (w), (x) and (y) green.

Wave v pink unfolded as an impulse labeled waves (i) through (v) green.

Within wave 5 maroon waves (i) and (ii) green are highly likely complete and wave (iii) green is expected to unfold towards the downside.

Wave (i) green unfolded as a leading diagonal labeled waves i through v orange.

Wave (ii) green unfolded as a zigzag correction labeled waves a, b and c orange.

Within wave (iii) green waves i and ii orange are likely complete and wave iii orange is extending towards the downside.

Within wave iii orange waves 1 and 2 purple are likely complete and wave 3 purple is underway.

Wave 1 purple unfolded as an impulse labeled waves (1) through (5) aqua.

This count would be confirmed by movement below 1.5903.

At 1.5775 wave 3 purple will reach equality with wave 1 purple and at 1.5563 wave 3 purple will reach 1.618 the length of wave 1 purple.

This count would be invalidated by movement above 1.6118 as wave 2 purple may not retrace more than 100 % the length of wave 1 purple.

Alternate Wave Count

02-gbpusd08nov13daily1alt
The only difference between both main and alternate counts is within the subdivisions of wave 2 purple as the alternate count expects that wave 2 purple has more to offer towards the upside.

The alternate count expects that wave 2 purple is unfolding towards the upside as a zigzag labeled waves (A), (B) and (C) aqua with waves (A) and (B) aqua complete and wave (C) aqua is unfolding towards the upside.

This count would be confirmed by movement above 1.6118.

At 1.6171 wave (C) aqua will reach equality with wave (A) aqua and at 1.6174 wave 2 purple will reach 0.786 the length of wave 1 purple.

This count would be invalidated by movement above 1.6247 as wave 2 purple may not retrace more than 100 % the length of wave 1 purple and as well this count would be invalidated by movement below 1.5903 as wave (B) aqua may not retrace more than 100 % the length of wave (A) aqua and it should be noted that the invalidation point will be moved to the end of wave (B) aqua once we have confirmation on the 8 hours chart that wave (C) aqua is unfolding towards the upside.

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