GBPUSD 27th October, 2015

Cable unfolded downwards confirming the main count and -so far- Cable fell short of the first target by 2 pips.

We are updating the main count according to the latest price action and the main count expects that Cable is forming a series of first and second waves and as a reminder this suggests that Cable should start a free fall within a third of a third wave. The alternate count on the other hand expects the downwards movement to pause and for a corrective structure to unfold in a sideways manner before resuming the downtrend.

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

Main Hourly Count

– Invalidation Point: 1.5382
– Confirmation Point: 1.5282
– Downwards Targets: 1.5269 — 1.5256 — 1.5195
– Wave number: 3 red
– Wave structure: Motive
– Wave pattern: Impulse

Alternate Hourly Count

– Invalidation Points: 1.5282 — 1.5506
– Confirmation Point: 1.5382
– Upwards Targets: 1.5396 — 1.5422
– Wave number: (2) aqua
– Wave structure: Corrective
– Wave pattern: Zigzag

Elliott Wave chart analysis for the GBPUSD for 27th October, 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 waves i and ii pink are complete and that wave iii pink is unfolding downwards.

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

Within wave iii pink it is likely that waves (i) and (ii) green are complete and wave (iii) green is at its early stages.

Within wave (iii) green it is likely that waves i and ii orange are complete and that wave iii orange is unfolding towards the downside.

This count would be confirmed by movement below 1.5107.

At 1.4992 wave iii pink will reach 1.382 of wave i pink which is the next logical target and at 1.4853 wave iii pink will reach 1.618 of wave i pink.

This count would be invalidated by movement above 1.5659 as within wave (iii) green no second wave may retrace more than 100 % of its first wave.

Main Hourly Wave Count

This count expects series of first and second waves forming on the hourly chart and that a third wave is around the corner.

Within wave (iii) green, waves i and ii orange are complete and wave iii orange is at its very early stages.

Wave i orange unfolded as an impulse labeled waves 1 through 5 purple with wave 5 purple unfolding as an ending diagonal labeled waves (1) through (5) aqua.

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

Wave A purple unfolded as an impulse labeled waves (1) through (5) aqua.

Wave B purple unfolded as an expanded flat correction labeled waves (A), (B) and (C) aqua.

Within wave iii orange it is likely that waves 1 and 2 purple are complete and that wave 3 purple is starting to extend downwards.

Within wave 3 purple it is expected that waves (1) and (2) aqua are complete and wave (3) aqua is underway with waves 1 and 2 red complete and wave 3 red is unfolding downwards.

This count would be confirmed by movement below 1.5282.

At 1.5269 wave 3 red would reach equality with wave 1 red and at 1.5256 wave 3 purple would reach 2.618 of wave 1 purple. The final target is at 1.5195 wave (3) aqua would reach 1.618 of wave (1) aqua.

This count would be invalidated by movement above 1.5382 as within wave 3 red 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 within wave 3 purple.

This count expects that wave (1) aqua within wave 3 purple is complete and that wave (2) aqua is unfolding towards the upside.

Wave (1) aqua unfolded as a leading diagonal labeled waves 1 through 5 red.

It is worth noting that this count does not provide the best fit.

This count would be confirmed by movement above 1.5382.

At 1.5396 wave (2) aqua would reach 50 % of wave (1) aqua and at 1.5422 wave (2) aqua would reach 0.618 of wave (1) aqua.

This count would be invalidated by movement above 1.5506 as wave (2) aqua may not retrace more than 100 % of wave (1) aqua and as well this count would be invalidated by movement below 1.5282 as within wave (2) aqua no B wave may retrace more than 100 % of its A wave.

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