GBPUSD 28th May, 2014

On Wednesday`s session the pound unfolded towards the downside as expected and Cable found a bottom at the middle of the specified target zone.

We are updating the main count according to the latest price action and as always we will wait for the confirmation point to be reached to gain further confidence in the main count.

Main Hourly Count

– Invalidation Point: 1.6783
– Confirmation Point: 1.6697
– Downwards Targets: 1.6683 – 1.6657
– Wave number: 5 purple
– Wave structure: Motive
– Wave pattern: Impulse / Ending diagonal

Elliott Wave chart analysis for the GBPUSD for 28th May, 2014. Please click on the charts below to enlarge.

Main Daily Wave Count

01-gbpusd28may14daily

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 waves (i) and (ii) green are complete and wave (iii) green is starting to unfold towards the downside.

This count would be confirmed by movement below 1.6697.

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 1.6922 as within wave (iii) green no second wave may retrace more than 100 % the length of the first wave.

Main Hourly Wave Count

02-gbpusd28may14hourly

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, waves (i) and (ii) green are expected 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 through 3 purple are complete and wave 4 purple is likely complete as well and it is expected that wave 5 purple is underway.

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

As far as MACD study goes, the lack of a divergence on the hourly chart augments the main count`s view.

This count would be confirmed by movement below 1.6697.

At 1.6683 wave 5 purple will reach 0.382 the length of wave 3 purple and at 1.6657 wave (iii) green will reach equality with wave (i) green.

This count would be invalidated by movement above 1.6783 as wave 4 purple may not enter the price territory of wave 1 purple and it should be noted that the invalidation point will be moved to the end of wave 4 purple once we have confirmation on the hourly chart that wave 5 purple is underway.

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