GBPUSD 31st August, 2015

Cable unfolded within a range leaving both counts valid. The nature of Monday`s movement lowers the probabilities of the main count. However, since the main count`s invalidation point is yet to be reached, the main count remains a valid count.

We are updating the main count according to the latest price action which expects Cable to move upwards in a corrective manner, therefore we should be cautious. As well, we are updating the alternate count which expects that a fifth wave is incomplete and that Cable has more to offer towards the downside.

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: 1.5820 — 1.5370
– Confirmation Point: 1.5445
– Upwards Targets: 1.5457 — 1.5476 — 1.5530
– Wave number: (ii) green
– Wave structure: Corrective
– Wave pattern: Expanding Flat

Alternate Hourly Count

– Invalidation Point: 1.5510
– Confirmation Point: 1.5335
– Downwards Target: 1.5321 — 1.5304 — 1.5290
– Wave number: v orange
– Wave structure: Motive
– Wave pattern: Ending diagonal

Elliott Wave chart analysis for the GBPUSD for 31st August, 2015. Please click on the charts below to enlarge.

Main Daily Wave Count

This count expects that primary wave B maroon is complete and that primary wave C maroon is unfolding towards the downside.

Within wave C maroon intermediate wave (1) black is complete as an impulse labeled minor waves 1 through 5 blue and intermediate wave (2) black might be complete as well and that intermediate wave (3) black has started unfolding downwards.

Within wave (1) black, 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.

Intermediate wave (2) black unfolded as a zigzag labeled waves A, B and C blue.

Wave B blue unfolded as a zigzag labeled waves a, b and c pink.

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

Within intermediate wave (3) black it is expected that wave i pink is complete and that wave ii pink is likely complete and wave iii pink might be at its early stages.

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

This count would be confirmed by movement below 1.5330.

At 1.5223 wave iii pink will reach equality with wave i pink and at 1.5853 wave iii pink will reach 1.618 of wave i pink.

This count would be invalidated by movement above 1.5820 as within wave iii pink no second wave may retrace more than 100 % of its first wave.

Main Hourly Wave Count

This count expects that wave C blue and therefore intermediate wave (2) black might be complete and that intermediate wave (3) black has started unfolding towards the downside.

Within intermediate wave (3) black, it is expected that wave i pink is complete and wave ii pink might be complete and wave iii pink is at its early stages.

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

Wave (x) 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 a orange unfolded as an impulse labeled waves 1 through 5 purple.

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

Wave 1 purple unfolded as a leading diagonal labeled waves (1) through (5) aqua with each wave within that leading diagonal unfolding as a zigzag correction. It is worth noting that within wave (3) aqua wave C failed to exceed the high of wave A.

Wave 4 purple unfolded as a triangle labeled waves (A) through (E) aqua.

This count expects that wave iii pink is at its early stages with wave (i) green complete as an impulse labeled waves i through v orange and wave (ii) green is unfolding as an expanded flat correction towards the upside.

Within wave (ii) green, waves a and b orange are complete and wave c orange is underway.

Wave b orange unfolded as a double combination labeled waves W, X and Y purple.

This count would be confirmed by movement above 1.5445.

We have a target zone that starts at 1.5457 as at that level wave c orange will reach 1.618 of wave a orange and that target zone ends at 1.5476 as at that level wave (ii) green will reach 0.236 of wave (i) green. Finally if exceeded then the next logical target is at 1.5530 as at that level wave c orange will reach 2.618 of wave a orange.

This count would be invalidated by movement above 1.5820 as wave (ii) green may not retrace more than 100 % of wave (i) green. As well, this count would be invalidated by movement below 1.5339 as within wave c orange no second wave may retrace more than 100 % of its first wave.

Alternate Hourly Wave Count

The only difference between both main and alternate counts is within the subdivisions of wave v orange.

This count expects that wave v orange is incomplete and that it is unfolding downwards as an ending diagonal labeled waves 1 through 5 purple with waves 1 and 2 purple complete and wave 3 purple is underway.

Wave 1 purple unfolded as a zigzag labeled waves (A), (B) and (C) aqua.

Within wave 3 purple it is likely that waves (A) and (B) aqua are complete and that wave (C) aqua has started unfolding towards the downside.

This count would be confirmed by movement below 1.5335.

Since wave v orange exceeded equality with wave i orange by 1 pip, the next logical target is at at 1.5321 as at that level wave v orange would reach 1.382 of wave i orange and the second target is at 1.5304 as at that level wave (C) aqua will reach equality with wave (A) aqua. The final target is at 1.5290 as at that level wave v orange would reach 1.618 of wave i orange.

This count would be invalidated by movement above 1.5510 as wave 2 purple may not retrace more than 100 % of wave 1 purple. It should be noted that the invalidation point will be moved to the end of wave 2 purple once we have confirmation on the hourly chart that wave 3 purple is unfolding towards the downside.

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