GBPUSD 29th May, 2014

On Thursday`s session the pound unfolded towards the downside as expected, however the pound fell short of the specified target by 9 pips before reversing directions and moving towards the upside.

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: 1.6922 — 1.6692
– Confirmation Point: 1.6741
– Upwards Targets: 1.6780 – 1.6834
– Wave number: ii orange
– Wave structure: Corrective
– Wave pattern: Zigzag

Elliott Wave chart analysis for the GBPUSD for 29th May, 2014. Please click on the charts below to enlarge.

Main Daily Wave Count

01-gbpusd29may14daily

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.

Within wave (iii) green this count expects that wave i orange is complete and that wave ii orange is underway.

This count would be confirmed by movement above 1.6741.

At 1.6780 wave ii orange will reach 0.382 the length of wave i orange and at 1.6834 wave ii orange will reach 0.618 the length of wave i orange.

This count would be invalidated by movement above 1.6922 as wave ii orange may not retrace more than 100 % the length of wave i orange and as well this count would be invalidated by movement below 1.6692 as within wave ii orange no B wave may retrace more than 100 % the length of an A wave.

Main Hourly Wave Count

02-gbpusd29may14hourly
02-gbpusd29may14hourlymacd

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 highly likely complete and wave ii orange is expected to be underway. 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.

As far as MACD study goes, the presence of a divergence on the hourly chart between the end of wave 3 purple and the end of wave 5 purple supports the main count`s view.

This count would be confirmed by movement above 1.6741.

At 1.6780 wave ii orange will reach 0.382 the length of wave i orange and at 1.6834 wave ii orange will reach 0.618 the length of wave i orange.

This count would be invalidated by movement above 1.6922 as wave ii orange may not retrace more than 100 % the length of wave i orange and as well this count would be invalidated by movement below 1.6692 as within wave ii orange no B wave may retrace more than 100 % the length of an A wave.

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