Archives for December 2015
In our previous analysis GBPUSD: Is Cable`s Downtrend Back To Stay ?! the main count expected Cable to unfold downwards to reach 1.4861 then to 1.4853 and finally 1.4800 and Cable unfolded as expected and all targets were reached and exceeded locking in 95 pips in profit.
This week`s main count expects that Cable has one last push downwards to complete a B wave before reversing directions upwards to complete wave 2 blue.
The first alternate hourly count expects that B wave is mature and that wave c pink within wave 2 blue has started unfolding upwards.
Since the first alternate count does not provide short term opportunities, we are adding a second alternate count which expects that wave 2 blue is complete and that wave 3 blue is underway as we will soon discuss.
As always we will wait for either counts confirmation point to be reached to determine the highly probable count.
– Invalidation Point: 1.4875
– Confirmation Point: 1.4785
– Downwards Target: 1.4779
– Wave number: b pink
– Wave structure: Corrective
– Wave pattern: Expanded flat
First Alternate Count
– Invalidation Point: 1.5932 — 1.4785
– Confirmation Point: 1.5241
– Upwards Targets: 1.5268 — 1.5328 — 1.5347
– Wave number: (iii) green
– Wave structure: Motive
– Wave pattern: Impulse
Second Alternate Count
– Invalidation Point: 1.4785 — 1.5241
– Confirmation Point: 1.4914
– Upwards Target: 1.4960 — 1.5014 — 1.5067
– Wave number: (ii) green
– Wave structure: Corrective
– Wave pattern: Zigzag
My apologies for not publishing this week`s video as I am going through a bad case of flu and my voice is barely audible.
Elliott Wave chart analysis for the GBPUSD for 29th December, 2015. Please click on the charts below to enlarge.
Main 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 waves (1) and (2) black might be complete and intermediate wave (3) black has started unfolding downwards.
Within intermediate wave (3) black it is expected that minor wave 1 blue is complete as a leading diagonal labeled waves i through v pink with each wave within that leading diagonal unfolding as a three wave structure labeled waves (a), (b) and (c) green
This count expects that minor wave 2 blue is unfolding as an expanded flat correction labeled waves a, b and c pink with wave a pink complete and wave b pink is at its very late stages.
Within wave b pink it is likely that waves (a) and (b) green are complete and that wave (c) green is underway as an impulse labeled waves i through v orange with waves i through iv orange complete and wave v orange is underway.
This count would be confirmed by movement below 1.4785.
At 1.4779 wave b pink would reach 1.382 of wave a pink which is the common target for the completion of B waves in an expanded flat corrections.
This count would be invalidated by movement above 1.4875 as wave iv orange may not enter the price territory of wave i orange.
First Alternate Wave Count
The difference between both main and alternate counts is within the subdivisions of wave b pink.
This count expects that wave b pink is complete and that wave c pink has started unfolding upwards.
Wave b pink unfolded as a zigzag labeled waves (a), (b) and (c) green.
Wave (a) green unfolded as an impulse labeled waves i through v orange.
Wave (b) green unfolded as a triangle labeled waves a through e orange.
This count would be confirmed by movement above 1.5241.
At 1.5268 wave c pink would reach 1.382 of wave a pink and at 1.5328 wave c pink would reach 1.618 of wave a pink.
This count would be invalidated by movement above 1.5932 as wave 2 blue may not retrace more than 100 % of wave 1 blue and as well this count would be invalidated by movement below 1.4785 as within wave c pink no second wave may retrace more than 100 % of its first wave.
Second Alternate Wave Count
This count provides a short term trading opportunity as the first alternate count does not provide such an opportunity for the short term.
This count expects that wave 2 blue is complete and that wave 3 blue has started unfolding downwards.
Wave 2 blue unfolded as a shallow zigzag labeled waves a, b and c pink.
Within wave 3 blue, this count expects that wave i pink is unfolding downwards.
Within wave i pink it is likely that wave (i) green is complete as an impulse labeled waves i through v orange and that wave (ii) green has started unfolding upwards in a corrective manner.
This count would be confirmed by movement above 1.4914.
At 1.4960 wave (ii) green would reach 0.382 of wave (i) green and at 1.5014 wave (ii) green would reach 50 % of wave (i) green and the final target is at 1.5067 as at that level wave (ii) green would reach 0.618 of wave (i) green.
This count would be invalidated by movement below 1.4785 as within wave (ii) green no B wave may retrace more than 100 % of its A wave and as well, this count would be invalidated by movement above 1.5241 as wave (ii) green may not retrace more than 100 % of wave (i) green.
Cable unfolded as expected confirming the main count and Cable -so far- fell short of the first specified target by 4 pips.
We are publishing this post today to wish you a very merry Christmas and to let you know that charts and analysis will be updated once the markets are open.
Merry Christmas, everyone!