GBPUSD 23rd April, 2015

On Thursday`s session, Cable unfolded in a sideways manner ending the day near its opening level.

We modified the subdivisions of wave iii pink according to the latest price action and the main count expects Cable to unfold upwards in a five wave structure while the alternate count expects Cable to reverse directions and move downwards to complete the corrective structure we have been tracking.

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

Main Hourly Count

– Invalidation Points: 1.4959
– Confirmation Point: 1.5080
– Upwards Targets: 1.5102 — 1.5127 — 1.5216
– Wave number: (i) green
– Wave structure: Motive
– Wave pattern: Impulse

Alternate Hourly Count

– Invalidation Points: 1.5080 — 1.4566
– Confirmation Point: 1.4913 — 1.4856
– Downwards Targets: 1.4830 — 1.4762
– Wave number: ii pink
– Wave structure: Corrective
– Wave pattern: Expanded Flat

Elliott Wave chart analysis for the GBPUSD for 23rd April, 2015. Please click on the charts below to enlarge.

Main Daily Wave Count

This count expects that primary wave B maroon is complete as a zigzag labeled intermediate waves (A), (B) and (C) black and that primary wave C maroon is unfolding towards the downside.

Within wave C maroon intermediate wave (1) black is likely complete as an impulse labeled minor waves 1 through 5 blue and intermediate wave (2) black has started unfolding towards the upside.

Wave 1 blue unfolded as a leading diagonal labeled minute waves i through v pink.

wave 2 blue unfolded as a zigzag structure labeled minute waves a, b and c pink.

Wave 3 blue unfolded as an impulse labeled minute waves i through v pink.

Wave 4 blue unfolded as a triangle labeled minute waves a through e pink.

As far as MACD study goes, MACD is failing to register new lows to follow price action, such behavior highly suggests that downwards movement is running out of steam as momentum does not support recent downwards movements.

This count would be initially confirmed by movement above 1.5080 and the final confirmation point is at 1.5553 .

At 1.5569 wave (2) black will reach 0.382 the length of wave (1) black and at 1.6189 wave (2) black will reach 0.618 the length of wave (1) black.

This count would be invalidated by movement above 1.7193 as wave (2) black may not retrace more than 100 % the length of wave (1) black. As well, this count would be invalidated by movement below 1.4566 as within wave A blue within wave (2) black no second wave may retrace more than 100 % the length of the first wave.

Main Hourly Wave Count

This count expects that minor wave (1) black is complete and that wave (2) black has started unfolding towards the upside.

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

Wave y pink unfolded as a triangle labeled waves a through e pink while waves w and x pink unfolded as zigzags.

Wave 5 blue unfolded as an impulse labeled waves i through v pink.

Wave iii pink unfolded as an impulse labeled waves (i) through (v) green.

Within wave (2) black, it is expected that wave A blue is unfolding towards the upside as an impulse labeled waves i through v pink with waves i and ii pink complete and wave iii pink is underway.

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

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

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

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

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

After the completion of wave i pink, wave ii pink unfolded as zigzag towards the downside labeled waves (a), (b) and (c) green.

Within wave iii pink it is expected that waves (i) and (ii) green are complete and that within wave (iii) green waves i and ii orange are complete as well and that wave iii orange is unfolding towards the upside.

This view suggests that a third of a third wave is underway and this implies a quick upwards movement to provide the right impulse look.

This count would be confirmed by movement above 1.5080.

At 1.5102 wave v orange will reach 0.786 of wave i orange and at 1.5127 wave v orange will reach equality with wave i orange and the final target is at 1.5216 as at that level wave (iii) green will reach 2.618 of wave (i) green.

This count would be invalidated by movement below 1.4959 as wave ii orange may not retrace more than 100 % of wave i orange. It should be noted that the invalidation point will be moved to the end of wave ii orange once we have confirmation on the hourly chart that wave iii orange is underway.

Alternate Hourly Wave Count

The difference both main and alternate counts is within the subdivisions of wave ii pink.

This count expects that wave ii pink within wave A blue might be incomplete and that it has more to offer towards the downside.

Wave ii pink is unfolding as an expanded flat correction with waves (a) and (b) green complete and wave (c) green has started unfolding towards the downside.

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

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

This count would be initially confirmed by movement below 1.4913 and our confidence in this count would increase dramatically by movement below 1.4856.

At 1.4830 wave (c) green will reach 1.382 of wave (a) green and at 1.4762 wave (c) green will reach 1.618 of wave (a) green and the second target is the most common target for the completion of C waves within an expanded flat correction.

This count would be invalidated by movement below 1.4566 as wave ii pink may not retrace more than 100 % of wave i pink and as well this count would be invalidated by movement above 1.5080 as within wave (c) green no second wave may retrace more than 100 % the length of the first wave.

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