GBPUSD 27th December, 2013

On Friday`s session the pound unfolded towards the upside reaching and exceeding both first and second specified targets.

We are updating the main count according to the latest price action and we are adding an alternate count which expects the pound to unfold towards the downside in a corrective manner.

Main Hourly Count

– Invalidation Point: 1.6316
– Confirmation Point: 1.6579
– Upwards Target : 1.6619
– Wave number: v pink
– Wave structure: Motive
– Wave pattern: Ending Diagonal

Elliott Wave chart analysis for the GBPUSD for 27th December, 2013. Please click on the charts below to enlarge.

Main Daily Wave Count

01-gbpusd27dec13daily

This count expects that wave 4 maroon has more to offer towards the upside and that wave v pink is underway.

Within wave (E) black wave A blue unfolded as an impulse labeled waves i through v pink.

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

Wave B blue unfolded as a flat correction labeled waves a, b and c pink with wave c pink unfolding as an impulse labeled waves (i) through (v) green.

Within wave C blue waves i through iv pink are expected complete and wave v pink is underway.

Wave iii pink unfolded as an impulse labeled waves (i) through (v) green and this count expects that wave iv pink is complete as a triple zigzag and that wave v pink is starting to unfold towards the upside.

This count expects wave v pink to be unfolding towards the upside as an ending diagonal.

As far as Japanese candlesticks study goes, the presence of a “Three White Soldiers” formation augments the main count`s view that further upwards movement is expected.

This count would be confirmed by movement above 1.6578.

At 1.6619 wave (v) green within wave v pink will reach 0.618 the length of wave (iii) green.

This count would be invalidated by movement below 1.6219 as within wave v pink no second wave may retrace more than 100 % the length of the first wave.

Main Hourly Wave Count

02-gbpusd27dec13hourly

02-gbpusd27dec13hourlymacd

This count expects that wave C blue is unfolding towards the upside.

Wave C blue is unfolding as an impulse labeled waves i through v pink with waves i through iv pink complete and wave v pink is unfolding towards the upside.

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

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

The first wave (x) green unfolded as a zigzag labeled waves a, b and c orange.

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

The second wave (x) green unfolded as a zigzag labeled waves a, b and c orange.

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

Following the completion of wave iv pink wave v pink is expected to be unfolding as an ending diagonal labeled waves (i) through (v) green with waves (i) through (iv) green complete and wave (v) green is underway.

Wave (iii) green unfolded as a zigzag labeled waves a, b and c orange and it should be noted that wave (iii) green was 3 pips shorter than wave (i) green.

As far as MACD study goes, MACD readings followed price action and registered a new high as wave (iii) green unfolded towards the upside, that is a typical behavior as a third wave is always accompanied with the highest momentum.

This count would be confirmed by movement above 1.6578.

At 1.6619 wave (v) green will reach 0.618 the length of wave (iii) green.

This count would be invalidated by movement below 1.6316 as wave (iv) green may not move below the end of wave (ii) green and it should be noted that the invalidation point will be moved to the end of wave (iv) green once we have confirmation on the hourly chart that wave (v) green is unfolding towards the upside.

Alternate Hourly Wave Count

03-gbpusd27dec13hourlyalt

P.S.: This count is presented on an 8-hours chart for clarification purposes.

The difference between both main and alternate counts is within the subdivisions of wave C blue.

This count expects wave C blue is unfolding towards the upside as an ending diagonal labeled waves i through v pink with waves i through iii pink complete and wave iv pink is underway.

Wave i pink unfolded as a zigzag labeled waves (a), (b) and (c) green with wave (c) green unfolding as an impulse labeled waves i through v orange.

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

Wave iii pink unfolded as a zigzag labeled waves (a), (b) and (c) green with wave (b) green unfolding as a triangle.

Within wave iv pink wave (a) green is complete and wave (b) green is expected to be underway.

This count would be confirmed by movement below 1.6457.

At 1.6441 wave iv pink will reach 0.382 the length of wave iii pink and at 1.6399 wave iv pink will reach 50 % the length of wave iii pink.

This count would be invalidated by movement above 1.6579 as wave (b) green may not retrace more than 100 % the length of wave (b) green and as well this count would be invalidated by movement below 1.6219 as wave iv pink may not move below the end of wave ii pink within an ending diagonal.

4 thoughts on “GBPUSD 27th December, 2013”

    1. Dear Wooseok,

      I should thank you first for sharing your count with us, sharing and comparing counts as a community help us to evolve into better “Ellioticians”.

      Now, let`s view the count :), The first thing I noticed is that you labeled the upwards movement as wave E black suggesting a last leg within a triangle. This leaves us with two choices for how wave E black is unfolding either as a zigzag or as a double zigzag.

      The first difference would be in labeling, a zigzag would be labeled as waves A, B and C while a double zigzag would be labeled as waves W, X and Y.

      The second and the most important difference would be in substructure, in a zigzag waves A and C are expected to unfold in five waves so the overall structure would be fivewaves for wave A, three waves for wave B and five waves for wave C.

      On the other hand, in a double zigzag waves W and Y are expected to unfold in three waves so the overall structure would be three waves for wave W, three waves for wave X and three waves for wave Y.

      Based on that, I would be really interested in looking at your wave A blue subdivisions.

      Let me know how you think wave E black is unfolding, is it as a zigzag or a double zigzag !!

      Last thing I want to say is that when it comes to analysis, we all make mistakes and learning from these mistakes helps us to avoid them the next time we are analyzing the market. So I am encouraging you to continue analyzing the market and come up with different counts, and I congratulate you on finding the courage within to publish your counts.

      Happy New Year!

      Sincerely,
      Nady

      1. Hello Nady,

        Thank you so much for your comment. I just followed you as I counted blue A,B and Black B.
        I am sorry that I am still learning so I can”t tell what zigzag or double zigzag is.
        However I just figured it out fib number.

        First, length of blue A is 1448 pip
        then, multiply by 0.382, 0.5 and 0.618

        I found that 1448 * 0.5 = 724

        Blue B is 1..5853 and add 724.
        That would be 1..6577 which is the exact top.

        Once again, thank you so much for your time.

        Happy New Year.

        Sincerely,

        Wooseok

        1. Hello Wooseok,

          You are most welcome and thank you for your comments and insight.

          Both zigzags and double zigzags are types of corrective structure which mainly are against the trend.

          A zigzag is formed of waves A, B and C where waves A and C consists of five waves.

          A double zigzag is formed of two zigzags, the first zigzag containing waves (A, B and C) is represented by wave W and the second zigzag containing waves (A, B and C) is represented b y wave Y, these two zigzags are linked with an X wave.

          Hope the illustration attached will shed some light on the difference between zigzags and double zigzags.

          Zigzag Vs. Double Zigzag Illustration

          Regarding the Fibonacci ratios, I agree with you that at the start of wave C blue towards the upside we used that ratio to calculate the target for the completion of wave C blue on the latest monthly analysis, you can find the monthly analysis here.

          However as wave C blue started to unfold towards the upside, we had more data to calculate more accurate targets within the subdivisions of wave C blue and -so far- even though that target was reached to the pip, the main count expects that wave C blue has a little more to offer towards the upside to be structurally complete, please review the latest daily analysis published here where we discussed the possibility of a completed wave C blue.

          Hope I managed to clarify things a bit and please do not hesitate to leave a comment and share your insight with us, thank you again, Wooseok.

          Sincerely,
          Nady

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