GBPUSD – Is It Time For Downtrend Correction Yet !!

This week the pound reached the alternate count confirmation point, exceeded the specified target before continuing towards the upside invalidating that count.

We are updating the main count according to the latest price action and we will update the monthly analysis during the week to reflect the latest price action and to discuss mid and long term alternate counts.

8-Hours Main Count

– Invalidation Point: 1.6823 — 1.6487
– Confirmation Point: 1.6746
– Downwards Targets : 1.6729 — 1.6672
– Wave number: (iv) green
– Wave structure: Corrective
– Wave pattern: Zigzag

8-Hours Alternate Count

– Invalidation Point: 1.7044 — 1.6487
– Confirmation Point: 1.6823
– Upwards Target : 1.6873
– Wave number: (v) green
– Wave structure: Motive
– Wave pattern: Impulse / Ending diagonal

Elliott Wave chart analysis for the GBPUSD for 14th February, 2014. Please click on the charts below to enlarge.

Main Wave Count

01-gbpusd14feb14daily1

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

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

Following the completion of wave iii pink, wave iv 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.

Within wave v pink, wave (i) green unfolded as an impulse labeled waves i through v orange.

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

As far as Fibonacci ratios go, wave (iii) green exceeded 1.618 the length of wave (i) green by 16 pips.

This count expects that wave (iv) green is unfolding towards the downside and this count would be confirmed by movement below 1.6746.

At 1.6729 wave (iv) green will reach 0.236 the length of wave (iii) green and at 1.6672 wave (iv) green will reach 0.382 the length of wave (iii) green.

This count would be invalidated by movement above 1.6823 as within wave (iv) green wave b orange may not retrace more than 100 % the length of wave a orange and as well this count would be invalidated by movement below 1.6487 as wave (iv) green may not enter the price territory of wave (i) green.

Alternate Wave Count

02-gbpusd14feb14daily1alt

The difference between the main and alternate counts is within the subdivisions of wave v pink.

This count expects that waves (i) through (iv) green are complete and that wave (v) green is unfolding towards the upside.

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 1.7044 as within a contracting triangle wave (C) black may not exceed the end of wave (A) black and as well this count would be invalidated by movement below 1.6487 as wave (iv) green may not enter the price territory of wave (i) 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 8 hours chart that wave (v) green is underway.

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