GBPUSD – 6th May, 2014 – Monthly

Over the last month, Cable unfolded towards the upside confirming the alternate count and target was reached and exceeded. So far Cable is shy of the main count`s invalidation point by almost 50 pips.

We are updating both counts according to the latest price action and it is worth mentioning that the main count`s probabilities are decreasing and the alternate count`s probabilities are increasing as the pound continue unfolding towards the upside.

As always we will wait for either count`s confirmation point to be reached to determine the highly probable count.

P.S: This month`s video analysis will be published shortly.

Elliott Wave chart analysis for the GBPUSD for 6th May, 2014. Please click on the charts below to enlarge.

Main Weekly Wave Count

01-gbpusd06may14monthly

This count expects that wave A maroon is complete and that wave B maroon is unfolding in a sideways manner.

Wave A maroon unfolded as an impulse labeled waves (1) through (5) black.

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 at its late stages.

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

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

Wave (C) black is unfolding towards the upside as a zigzag labeled waves A, B and C blue.

Wave B blue unfolded towards the downside as a double zigzag labeled waves w, x and y pink with wave W blue unfolding as a zigzag labeled waves (a), (b) and (c) green and wave x pink unfolded as a zigzag labeled waves (a), (b) and (c) green. Wave y pink unfolded as a zigzag labeled (a), (b) and (c) green.

Within wave C blue waves i through iv pink are expected complete and wave v pink is at its late stages.

As far as Japanese candlesticks study goes, no clear pattern appears at this point.

This count would be confirmed by movement below 1.6460.

We will be able to calculate a target for the completion of wave (D) black right after the completion of wave (C) black.

This count would be invalidated by movement above 1.7043 as within a triangle wave (C) black may not exceed the end of wave (A) black.

Alternate Weekly Wave Count

02-gbpusd05may14monthlyalt

This count is considered an alternate count because of the Fibonacci retracement of wave B blue within wave (B) black as this count expects a running flat for wave (B) black and based on that wave B blue is expected to retrace 90 % the length of wave A blue but wave B blue retraced 89.2 % the length of wave A blue.

This count expects that wave A maroon is complete as an impulse labeled waves (1) through (5) black.

Wave B maroon is expected to be underway as a zigzag labeled waves (A), (B) and (C) black with waves (A) and (B) black complete and wave (C) black is unfolding towards the upside.

Wave (A) black unfolded as an impulse labeled waves 1 through 5 blue.

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

Wave A blue unfolded as a zigzag labeled waves a, b and c pink.

Wave B blue unfolded as a zigzag labeled waves a, b and c pink.

Wave C blue unfolded as an ending diagonal labeled waves i through v pink with wave i pink unfolding as a zigzag labeled waves (a), (b) and (c) green.

Within wave (C) black waves 1 through 4 blue are expected complete and wave 5 blue is unfolding towards the upside.

Wave 3 blue extended into waves i through v pink with wave iii pink extending into waves (i) through (v) green.

This count would be confirmed by movement above 1.7043.

At 1.7081 wave 5 blue will reach equality with wave 1 blue and at 1.7332 wave B maroon will reach 50 % the length of wave A maroon.

This count would be invalidated by movement above 2.1162 as wave B maroon may not retrace more than 100 % the length of wave A maroon and as well this count would be invalidated by movement below 1.6460 as within wave 5 blue no second wave may retrace more than 100 % the length of the first wave.

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