GBPUSD 27th April, 2015

Cable unfolded as expected and target was reached and exceeded.

We are updating the main count according to the latest price action and as well adding an alternate count which expects that Cable has more to offer towards the downside in a corrective manner before resuming its uptrend.

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: 1.4973
– Confirmation Point: 1.5262
– Upwards Target: 1.5289 — 1.5334
– Wave number: (v) green
– Wave structure: Motive
– Wave pattern: Impulse / Ending diagonal

Alternate Hourly Count

– Invalidation Points: 1.5262 — 1.4973
– Confirmation Point: 1.5218
– Downwards Targets: 1.5180 — 1.5130
– Wave number: (iv) green
– Wave structure: Corrective
– Wave pattern: Zigzag

Elliott Wave chart analysis for the GBPUSD for 27th 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 1.5262 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 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) through (iv) green are complete and that wave (v) green has started unfolding towards the upside.

Wave (iii) green was an extended third wave labeled waves i through v orange.

Within it, wave ii orange unfolded as a zigzag labeled waves A, B and C purple.

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

Wave iv orange unfolded as a zigzag labeled waves A, B and C purple.

Since this count expects a third of a third being likely complete, this count expects upwards momentum to slow down and to create bearish divergences. We already can see the first divergence complete between the ends of waves iii and v orange. The same behavior is expected to manifest itself between the ends of waves (iii) and (v) green.

This count would be confirmed by movement above 1.5262.

At 1.5289 wave (v) green will reach 0.618 of wave (i) green and at 1.5334 wave (v) green will reach equality with wave (i) green.

This count would be invalidated by movement below 1.4973 as wave (iv) green may not enter price territory of wave (i) green. It should be noted that the invalidation point will be moved to the end of wave (iv) green once we have confirmation on the hourly chart that wave (v) green is underway.

Alternate Hourly Wave Count

The difference between both main and alternate counts is within the subdivisions of wave (iv) green.

This count expects that wave (iv) green is incomplete and that it has more to offer towards the downside, specially since wave (iv) green at this stage is considered a very shallow correction.

This count would be confirmed by movement below 1.5218.

At 1.5180 wave (iv) green will reach 0.236 of wave (iii) green and at 1.5130 wave (iv) green will reach 0.382 of wave (iii) green.

This count would be invalidated by movement below 1.4973 as wave (iv) green may not enter price territory of wave (i) green and as well this count would be invalidated by movement above 1.5262 as within wave (iv) green no B wave may retrace more than 100 % the length of an A wave.

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