GBPUSD 26th February, 2014

On ًWednesday`s session the pound unfolded in a tight range and in a sideways manner failing to confirm either counts and therefore we are updating both counts according to the latest price action with tight invalidation points and targets.

It is worth mentioning that both counts have almost equal probabilities and as always we will use each count`s invalidation point to confirm the other count.

Main Hourly Count

– Invalidation Point: 1.6583
– Confirmation Point: 1.6728
– Upwards Targets: 1.6762 — 1.6850
– Wave number: (iii) green
– Wave structure: Corrective
– Wave pattern: Zigzag

Alternate Hourly Count

– Invalidation Point: 1.6252 — 1.6728
– Confirmation Point: 1.6583
– Upwards Targets: 1.6538 — 1.6489
– Wave number: (ii) green
– Wave structure: Corrective
– Wave pattern: Zigzag

Elliott Wave chart analysis for the GBPUSD for 26th February, 2014. Please click on the charts below to enlarge.

Main Daily Wave Count

01-gbpusd26feb14daily

This count expects that wave B maroon is unfolding as a triangle labeled waves (A) through (E) black with waves (A) and (B) black complete and wave (C) black is unfolding towards the upside.

Wave (C) black is unfolding towards the upside as a zigzag labeled waves A, B and C blue with waves A and B blue complete and wave C blue is underway.

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

Wave (iii) green unfolded as an impulse labeled waves i through v orange with wave iii orange unfolding as an impulse labeled waves 1 through 5 purple.

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

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

Wave v pink is unfolding towards the upside likely as an ending diagonal with wave (i) green complete and wave (ii) green is likely complete as well and wave (iii) green is underway.

As far as Japanese candlesticks study goes, the presence of what seems to be a “hanged man” pattern does not add much confirmation to the main count view, as the pattern is not ideal and it is not located at a trough.

This count would be confirmed by movement above 1.6823.

At 1.6873 wave v pink will reach equality with wave i pink.

This count would be invalidated by movement above 1.7043 as wave (C) black may not exceed the end of wave (E) black within a contracting triangle, as well this count would be invalidated by movement below 1.6583 as within wave a orange within wave (iii) green no second wave may retrace more than 100 % the length of the first wave.

Main Hourly Wave Count

02-gbpusd26feb14hourly

This count expects that wave (ii) green is complete and that wave (iii) green is starting to unfold towards the upside.

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

Wave a orange unfolded as an impulse labeled waves 1 through 5 purple with wave 3 purple unfolding as an impulse labeled waves (1) through (5) aqua.

Wave c orange unfolded as an impulse labeled waves 1 through 5 purple.

Wave 3 purple unfolded as an impulse labeled waves (1) through (5) aqua.

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

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

Wave w orange unfolded as a zigzag labeled waves (A), (B) and (C) purple with wave (A) purple unfolded as a leading diagonal labeled waves (1) through (5) aqua.

Wave y orange unfolded as a zigzag labeled waves (A), (B) and (C) purple.

Within wave (iii) green wave a orange is underway with waves 1 and 2 purple complete and wave 3 purple is unfolding towards the upside.

Wave 2 purple unfolded as a zigzag labeled waves (A), (B) and (C) aqua with wave (B) aqua unfolding as a running triangle.

This count would be confirmed by movement above 1.6728.

At 1.6762 wave 3 purple will reach equality with wave 1 purple and at 1.6850 wave 3 purple will reach 1.618 the length of wave 1 purple.

This count would be invalidated by movement below 1.6583 as wave 2 purple may not retrace more than 100 % the length of wave 1 purple and the invalidation point will be moved to the end of wave 2 purple once we have confirmation on the hourly chart that wave 3 purple is underway.

Alternate Hourly Wave Count

03-gbpusd26feb14hourlyalt

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

The difference between both main and alternate count is within the subdivisions of wave (ii) green as the alternate count expects that wave (ii) green has more to offer towards the downside.

Wave (ii) green is unfolding as a zigzag labeled waves a, b and c orange with waves a and b orange complete and wave c orange is starting to unfold towards the downside.

This count would be confirmed by movement below 1.6583.

At 1.6538 wave (ii) green will reach 0.382 the length of wave (i) green and at 1.6489 wave c orange will reach equality with wave a orange.

This count would be invalidated by movement above 1.6728 as within wave c orange no second wave may retrace more than 100 % the length of the first wave and as well this count would be invalidated by movement below 1.6252 as wave (ii) green may not retrace more than 100 % the length of wave (i) green.

Scroll to Top