GBPUSD 30th December, 2013

On Monday`s session the pound unfolded in a tight range leaving both main and alternate counts valid. We are updating both counts according to the latest price action and it should be noted that both counts have almost equal probabilities and therefore we will wait for either count`s confirmation point to be reached to determine the highly probable count.

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 30th December, 2013. Please click on the charts below to enlarge.

Main Daily Wave Count

01-gbpusd30dec13daily

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-gbpusd30dec13hourly

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.

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-gbpusd30dec13hourlyalt

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 waves (a) and (b) green are complete and wave (c) 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 1.6413 wave (c) green will reach equality with wave (a) green and this target is the highly probable target.

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 it should be noted that the invalidation point will be moved to the end of wave (b) green once we have confirmation on the 8 hourly chart that wave (c) green is unfolding towards the downside, 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.

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