Over last month, Cable unfolded towards the upside as expected and it fell short of the specified target by 8 pips before reversing directions and moving towards the downside.
The short term view expects Cable to continue moving towards the downside before finding a bottom with a stage characterized by a choppy movement and slow volume. Mid term and long term picture differs from the short term picture for the main count as both expect Cable to fall in a motive manner.
We are updating the main count according to the latest price action and as well adding an alternate count which anticipates Cable to unfold towards the upside following a short corrective decline.
as always we will wait for either count`s confirmation point to be reached to determine the highly probable count.
Elliott Wave chart analysis for the GBPUSD for 8th August, 2014. Please click on the charts below to enlarge.
Main Weekly Wave Count
This count expects that wave A maroon is complete as an impulse labeled waves (1) through (5) black.
Wave B maroon is likely complete as a zigzag labeled waves (A), (B) and (C) black and that wave C maroon is starting to unfold towards the downside.
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.
Wave (C) black unfolded as an impulse labeled waves 1 through 5 blue.
Wave 3 blue extended into waves i through v pink.
Wave 5 blue unfolded as an ending diagonal labeled waves i through v pink.
This count would be initially confirmed by movement below 1.6252, further confidence is at 1.5435 and the final confirmation point is at 1.4813.
This count would be invalidated by movement above 1.7193 as within wave C maroon no second wave may retrace more than 100 % the length of the first wave.
Alternate Weekly Wave Count
This count expects the latest downwards movement to be corrective in nature and that Cable has more to offer towards the upside.
The difference between both main and alternate counts is within wave (C) black as the alternate count expects that wave (C) black is incomplete.
Within wave (C) black waves 1 through 3 blue are expected complete and wave 4 blue is expected to unfold in a sideways manner. It is worth mentioning that we will be able to determine the nature of wave 4 blue as it continues to unfold.
Wave 3 blue unfolded as an impulse labeled waves i through v pink.
Wave iii pink unfolded as an impulse labeled waves (i) through (v) green.
Wave v pink unfolded as an ending diagonal labeled waves (i) through (v) green.
This count would be confirmed by movement above 1.7193.
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 1.5435 as wave 4 blue may not enter the price territory of wave 1 blue.