GBPUSD 26th May, 2014

On Monday`s session the pound unfolded in a very tight range leaving both counts valid. At the start of Tuesday`s session Cable started moving towards the upside and either count`s confirmation points are yet to be reached.

We are updating both counts according to the latest price action and as always we will use each count`s confirmation point to determine the highly probable count.

Main Hourly Count

– Invalidation Point: 1.6997
– Confirmation Point: 1.6813
– Downwards Targets: 1.6789 — 1.6748
– Wave number: 3 purple
– Wave structure: Motive
– Wave pattern: Impulse

Alternate Hourly Count

– Invalidation Point: 1.6997 — 1.6731
– Confirmation Point: 1.6918
– Downwards Targets: 1.6939
– Wave number: (ii) green
– Wave structure: Corrective
– Wave pattern: Double zigzag

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

Main Daily Wave Count
01-gbpusd26may14daily

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, wave (C) black is likely complete and wave (D) black is starting to unfold towards the downside.

Wave (C) black unfolded as a zigzag labeled waves A, B and C blue.

Wave C blue is likely complete as an impulse labeled waves i through v pink.

Wave iii pink extended into an impulse labeled waves (i) through (v) green.

Wave (ii) green unfolded as a zigzag labeled waves a, b and c orange and wave b orange is unfolding as a triangle labeled waves A through E purple.

Wave (iv) green unfolded as an expanded flat correction labeled waves a, b and c orange.

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

This count expects that wave v pink unfolded as an ending diagonal labeled waves (i) through (v) green.

Within wave (D) black wave (i) green is complete and wave (ii) green is likely complete as well and wave (iii) green is starting to unfold towards the downside.

This count would be confirmed by movement below 1.6731.

At 1.6657 wave (iii) green will reach equality with wave (i) green and at 1.6493 wave (iii) green will reach 1.618 the length of wave (i) green.

This count would be invalidated by movement above 1.6997 as wave (ii) green may not retrace more than 100 % the length of wave (i) green and it should be noted that the invalidation point will be moved to the end of wave (ii) green once we have confirmation on the daily chart that wave (iii) green is underway.

Main Hourly Wave Count

02-gbpusd26may14hourly

This count expects that wave (C) black is likely complete and that wave (D) black is at its very early stages.

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

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

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

Within wave (i) green wave i orange unfolded as an impulse labeled waves 1 through 5 purple.

Wave 1 purple unfolded as a leading diagonal labeled waves (1) through (5) aqua.

Wave 4 purple unfolded as a triangle labeled waves (A) through (E) aqua.

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

Within wave (iii) green wave i orange is underway and within wave i orange waves 1 and 2 purple are complete and wave 3 purple is unfolding towards the downside.

This count would be confirmed by movement below 1.6813.

At 1.6789 wave 3 purple will reach 200 % the length of wave 1 purple and at 1.6748 wave 3 purple will reach 2.618 the length of wave 1 purple.

This count would be invalidated by movement above 1.6997 as wave (ii) green may not retrace more than 100 % the length of wave (i) green and it should be noted that the invalidation point will be moved to the end of wave (ii) green once we have confirmation on the hourly chart that wave 3 purple is underway.

Alternate Hourly Wave Count

03-gbpusd26may14hourlyalt

This count expects that wave (ii) green is incomplete and that wave (ii) green has more to offer towards the upside.

Wave (ii) green is unfolding as a double zigzag labeled waves w, x and y orange with wave w orange complete and wave x orange is at its late stages.

This count would be confirmed by movement above 1.6918.

At 1.6939 wave (ii) green will reach 0.786 the length of wave (i) green.

This count would be invalidated by movement above 1.6997 as wave (ii) green may not retrace more than 100 % the length of wave (i) green and as well this count would be invalidated by movement below 1.6731 as wave x orange may not retrace more than 100 % the length of wave w orange.

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