GBPUSD 28th October, 2015

Cable unfolded downwards as expected and both first and second targets were reached and exceeded by 8 pips and Cable is very close to its lows at the time of publishing today`s analysis.

The recent downwards movement suggests that a leading diagonal is complete and that a second wave is starting to unfold upwards correcting the downwards movement. The alternate count expects that a leading diagonal is incomplete and that it has more to offer towards the downside

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

Main Hourly Count

– Invalidation Points: 1.5248 — 1.5506
– Confirmation Point: 1.5348
– Upwards Targets: 1.5378 — 1.5409
– Wave number: (2) aqua
– Wave structure: Corrective
– Wave pattern: Zigzag

Alternate Hourly Count

– Invalidation Point: 1.5348
– Confirmation Point: 1.5248
– Downwards Targets: 1.5242 — 1.5233
– Wave number: 3 red
– Wave structure: Motive
– Wave pattern: Leading diagonal

Elliott Wave chart analysis for the GBPUSD for 28th 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 wave (1) qua is complete and wave (2) aqua is underway.

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

This count would be confirmed by movement above 1.5348.

It is worth noting that at 1.5348 wave (2) aqua would reach 0.382 of wave (1) aqua. This is why this count does not provide a high confidence trading opportunity.

At 1.5378 wave (2) aqua would reach 50 % of wave (1) aqua and at 1.5409 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 1.5248 as within wave (2) aqua no B wave may retrace more than 100 % of its A wave.

Alternate Hourly Wave Count

The only difference between both main and alternate counts is within the subdivisions within wave (1) aqua.

This count expects that wave (1) aqua within wave 3 purple is incomplete and that it is unfolding as a leading diagonal labeled waves 1 through 5 red with waves 1 and 2 red complete and wave 3 red is underway.

Within wave 3 red waves a and b lime are complete and wave c lime is underway.

This count would be confirmed by movement below 1.5248.

At 1.5242 wave c lime would reach equality with wave a lime and at 1.5233 wave 3 red would reach 0.786 of wave 1 red.

This count would be invalidated by movement above 1.5348 as within wave c lime no second wave may retrace more than 100 % of its first wave.

Scroll to Top