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GBPUSD – Downwards Corrective Movement Before Resuming Uptrend Is Expected

This week the pound unfolded towards the upside reaching the main count`s initial confirmation point, however the pound`s movement has been choppy and within a tight narrow range.

We are updating both counts according to the latest price action with the main count expecting slight downwards corrective movement before resuming its uptrend while the alternate count expects a downwards impulsive movement.

As always we will let price action decide for us which count is the highly probable count.

8-Hours Main Count

– Invalidation Point: 1.6583 — 1.6787
– Confirmation Point: 1.6706
– Downwards Targets: 1.6684 — 1.6661
– Wave number: b orange
– Wave structure: Corrective
– Wave pattern: Zigzag

8-Hours Alternate Count

– Invalidation Point: 1.6823
– Confirmation Point: 1.6583
– Downwards Targets: 1.6547 — 1.6399
– Wave number: iii orange
– Wave structure: Motive
– Wave pattern: Impulse

Elliott Wave chart analysis for the GBPUSD for 7th March, 2014. Please click on the charts below to enlarge.

Main Wave Count

01-gbpusd07mar14daily1

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.

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.

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

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

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

Within wave (iii) green wave a orange is likely complete and wave b orange is unfolding towards the downside and following the completion of wave b orange, wave c orange is expected to unfold towards the upside.

This count would be confirmed by movement below 1.6706.

At 1.6684 wave b orange will reach 50 % the length of wave a orange and at 1.6661 wave b orange will reach 0.618 the length of wave a orange.

This count would be invalidated by movement below 1.6583 as 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 above 1.6787 as wave B purple may not retrace more than 100 % the length of wave A purple.

Alternate Wave Count

02-gbpusd07mar14daily1alt

This count expects that wave (C) black is likely complete and that wave (D) black is starting to unfold towards the downside.

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

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

Within wave (D) black, waves i and ii orange are likely complete and wave iii orange is starting to unfold towards the downside.

Wave i orange unfolded as a leading diagonal labeled waves 1 through 5 purple.

Wave ii orange unfolded as a triple zigzag labeled waves W, X, Y, X and Z purple.

This count would be confirmed by movement below 1.6583.

At 1.6547 wave iii orange will reach equality with wave i orange and at 1.6399 wave iii orange will reach 1.618 the length of wave i orange.

This count would be invalidated by movement above 1.6823 as wave ii orange may not retrace more than 100 % the length of wave i orange and it should be noted that the invalidation point will be moved to the end of wave ii orange once we have confirmation that wave iii orange is unfolding towards the downside.

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