GBPUSD 29th July, 2014

On Tuesday`s session Cable unfolded as expected under the main count and targets were reached and exceeded by 7 pips.

We are updating both counts according to the latest price action and -as a reminder-the alternate count expects that wave iv pink is complete and that wave v pink is starting to unfold towards the upside.

It is worth mentioning that both targets are placed very close to the main count`s confirmation point and that is because we are anticipating a change in directions during the next 24 hours.

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

Main Hourly Count

– Invalidation Point: 1.7001
– Confirmation Point: 1.6933
– Downwards Targets: 1.6929 — 1.6922
– Wave number: (c) green
– Wave structure: Motive
– Wave pattern: Impulse

Alternate Hourly Count

– Invalidation Point: 1.6933
– Confirmation Points: 1.7096 — 1.7193
– Upwards Targets: 1.7234
– Wave number: (c) green
– Wave structure: Motive
– Wave pattern: Impulse

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

Main Daily Wave Count

01-gbpusd29jul14daily

This count expects that wave B maroon is unfolding 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 (C) black is unfolding as an impulse labeled waves 1 through 5 blue with waves 1 through 4 blue complete and wave 5 blue is unfolding towards the upside.

Wave 4 blue unfolded as a double zigzag labeled waves w, x and y pink.

Wave 5 blue is expected to be unfolding towards the upside as an ending diagonal with waves i through iii pink complete and wave iv pink is underway.

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

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

Wave iii pink unfolded as a zigzag labeled waves (a), (b) and (c) green with wave (a) green unfolding as an impulses labeled waves i through v orange.

As far as MACD study goes, a bearish divergence is starting to unfold on the daily chart which supports the main count`s view.

Main Hourly Wave Count

02-gbpusd29jul14hourly

This count expects that wave 5 blue is unfolding towards the upside as an ending diagonal labeled waves i through v pink with waves i through iii pink complete and wave iv pink is unfolding towards the downside.

Wave iii pink unfolded as a zigzag labeled waves (a), (b) and (c) green.

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

Wave v orange unfolded as an impulse labeled waves 1 through 5 purple.

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

Wave c orange unfolded as an impulse labeled waves 1 through 5 Purple.

Within wave iv pink waves (a) and (b) green are expected complete and wave (c) green is anticipated to unfolded towards the downside.

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

Within wave (c) green waves i through iv orange are expected complete and wave v orange is underway.

Within wave v orange waves 1 through 4 purple are expected complete and wave 5 purple is starting to unfold towards the downside.

This count would be confirmed by movement below 1.6933.

At 1.6929 wave v orange will reach equality with wave i orange and at 1.6922 wave 5 purple will reach equality with wave 1 purple.

This count would be invalidated by movement above 1.7001 as within wave v orange no second wave may retrace more than 100 % the length of the first wave 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.

Alternate Hourly Wave Count

03-gbpusd29jul14hourlyalt

The only difference between both main and alternate counts is within the subdivisions of wave (c) green as the alternate count expects that waves i through v orange within wave (c) green are complete and that wave v pink is starting to unfold towards the upside.

Wave v pink is expected to unfold towards the upside during the next two weeks in a zigzag pattern.

This count would be initially confirmed by movement above 1.7096 and the final confirmation point is at 1.7193.

At 1.7234 wave v pink will reach 0.618 the length of wave iii pink.

This count would be invalidated by movement below 1.6933 as within wave (a) green within wave v pink no second wave may retrace more than 100 % the length of the first wave.

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