This week the pound unfolded towards the downside as expected and the main count`s confirmation point was reached.
This week`s count expects upwards corrective movement to complete a fourth wave of micro degree before reversing directions towards the downside within the fifth wave.
8-Hours Main Count
– Invalidation Point: 1.6120 — 1.5903
– Confirmation Point: 1.5940
– Upwards Targets : 1.5984 — 1.6034
– Wave number: 5 maroon
– Wave structure: Motive
– Wave pattern: Impulsive/Ending Diagonal
Elliott Wave chart analysis for the GBPUSD for 1st November, 2013. Please click on the charts below to enlarge.
Main Wave Count
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 wave i orange is underway likely as an impulse labeled waves 1 through 5 purple with waves 1 through 3 purple complete and wave 4 purple is underway.
Wave 3 purple unfolded as an impulse labeled waves (1) through (5) aqua and it is worth mentioning that wave 3 purple was 5 pips short of being 2.618 the length of wave 1 purple.
This count would be initially confirmed by movement above 1.5940.
At 1.5984 wave 4 purple will reach 0.236 the length of wave 3 purple and at1.6034 wave 4 purple will reach 0.382 the length of wave 3 purple.
This count would be invalidated by movement above 1.6120 as wave 4 purple may not enter the price territory of wave 1 purple and as well this count would be invalidated by movement below 1.5903 as within wave 4 purple no B wave may retrace more than 100 % the length of an A wave and it should be noted that the lower invalidation point will only be in effect once the confirmation point is reached.