GBPUSD – 3rd September, 2014 – Monthly

Over last month, Cable unfolded towards the downside as expected by both main and alternate counts and Cable is yet to reach main count`s confirmation point.

The short term view expects Cable to continue moving in an impulsive manner towards the downside before finding a bottom with a stage characterized by a choppy movement and slow volume, however the alternate count expects Cable to reverse directions and move towards the upside.

We are updating both main and alternate counts according to the latest price action and 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 3rd September, 2014. Please click on the charts below to enlarge.

Main Weekly Wave Count

01-gbpusd03sep14monthly

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

Wave B maroon is highly 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.

After the completion of wave B maroon, wave C maroon is starting to unfold towards the downside as an impulse with waves 1 and 2 blue likely complete and wave 3 blue is at its early stages.

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.

At 1.5989 wave 3 blue will reach equality with wave 1 blue and at 1.5583 wave 3 blue will reach 1.618 the length of wave 1 blue.

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

02-gbpusd03sep14monthlyalt

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 likely complete as well and that wave 5 blue is at its very early stages.

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.

At 1.7348 wave 5 blue will reach 0.382 the length of the distance traveled from the start of wave 1 blue to the end of wave 3 blue and at 1.7442 wave 5 blue will reach 1.618 the length of wave 1 blue.

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 and it is worth mentioning that the invalidation point will be moved to the end of wave 4 blue once we have confirmation on the weekly chart that wave 5 blue is underway.

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