GBPUSD 22nd May, 2015

Cable unfolded towards the downside as expected and first confirmation point was reached and Cable is yet to reach the final confirmation point and targets.

We are updating the main count according to the latest price action with short term targets and invalidation points. As well we are updating the alternate count which expects Cable to make new highs to complete wave a pink, it is worth noting that the alternate count is presented on a 6-hours chart for clarification purposes.

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

Main Hourly Count

– Invalidation Points: 1.5701
– Confirmation Point: 1.5525 — 5446
– Downwards Target: 1.5411 — 1.5346
– Wave number: y pink
– Wave structure: Corrective
– Wave pattern: Zigzag

Alternate Hourly Count

– Invalidation Points: 1.5446
– Confirmation Point: 1.5819
– Upwards Targets: 1.5895
– Wave number: v pink
– Wave structure: Motive
– Wave pattern: Zigzag

Elliott Wave chart analysis for the GBPUSD for 22nd May, 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.

This count expects that within intermediate wave (2) black, wave A blue is likely complete and wave B blue is starting to unfold towards the downside.

As far as MACD study goes, MACD is now showing a bigger bearish divergence between intermediate wave (2) black and the start of intermediate wave (1) black. So far, MACD is behaving accordingly. For the longer term MACD picture, MACD is expected to peak by the end of wave A blue and create another bearish divergence with the end of wave C blue to signal the completion of intermediate wave (2) black.

This count would be confirmed by movement below 1.5446.

At 1.5346 wave B blue will reach 0.382 of wave A blue and at 1.5198 wave B blue will reach 50 % of wave A blue, The final target which is the less probable target for a B wave is at 1.5050 as at that level wave B blue will reach 0.618 of wave A blue.

This count would be invalidated by movement above 1.5818 as within wave B blue no B wave may retrace more than 100 % the length of its A wave. As well, this count would be invalidated by movement below 1.4566 as within a zigzag wave B blue may not retrace more than 100 % of wave A blue.

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.

Within wave (2) black, it is expected that wave A blue is likely complete as an impulse labeled waves i through v pink and wave B blue is starting to unfold towards the downside.

Within wave A blue, wave iii pink unfolded as an impulse labeled waves (i) through (v) green.

Within wave iii pink, wave (iv) green unfolded as a zigzag labeled waves a, b and c orange.

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

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

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

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

Wave (iii) green extended into waves i through v orange with wave v orange unfolding as an impulse labeled waves 1 through 5 purple.

Wave (iv) green unfolded as an expanded flat correction labeled waves a, b and c orange.

After the completion of wave A blue, it is expected that wave B blue is underway as a double zigzag labeled waves w, x and y pink with waves w and x pink complete and wave y pink is unfolding towards the downside.

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

Wave x pink unfolded as a zigzag labeled waves (a), (b) and (c) green with wave (b) green unfolding as a triangle labeled waves a through e orange.

This count would be confirmed by movement below 1.5446.

At 1.5411 wave y pink will reach 0.786 of wave w pink and at 1.5346 wave B blue will reach 0.382 of wave A blue.

This count would be invalidated by movement above 1.5701 as within wave y pink no B wave may retrace more than 100 % of its A wave.

Alternate Hourly Wave Count

This count expects that wave A blue is incomplete and that wave A blue is unfolding towards the upside as a leading diagonal labeled waves i through v pink with waves i through iv pink complete and wave v pink is underway.

Wave i 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.

This count would be initially confirmed by movement above 1.5701 and the final confirmation point is by movement above 1.5819.

At 1.5895 wave v pink will reach 0.618 of wave iii pink and that is the common target for the completion of a fifth wave within a contracting leading diagonal.

This count would be invalidated by movement below 1.5446 as within wave v pink no B wave may retrace more than 100 % of its A wave.

Scroll to Top