GBPUSD 26th February, 2016

Cable unfolded inline with the alternate count`s view and Cable reached the first target and found a top 23 pips above that target before reversing directions and moving downwards.

The main count`s view suggests that wave iii pink is complete and that wave iv pink has started unfolding in a sideways manner.

On the other hand, alternate hourly count expects that Cable has more to offer downwards to complete wave iii pink before consolidating within a fourth wave.

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

Main Hourly Count

– Invalidation Point: 1.4379 — 1.3841
– Confirmation Point: 1.4043
– Upwards Targets: 1.4015 — 1.4121 — 1.4206
– Wave number: iv pink
– Wave structure: Corrective
– Wave pattern: ُZigzag

Alternate Hourly Count

– Invalidation Point: 1.4043
– Confirmation Point: 3841
– Upwards Targets: 1.3833 — 1.3810
– Wave number: (v) green
– Wave structure: Motive
– Wave pattern: Impulse/Zigzag

Elliott Wave chart analysis for the GBPUSD for 26th February, 2016. 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 waves (1) and (2) black might be complete and intermediate wave (3) black has started unfolding downwards.

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 minor waves 1 through 4 blue are likely complete with wave 1 blue unfolding as a leading diagonal labeled waves i through v pink.

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

Wave ii 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.

Wave iv pink unfolded as a zigzag labeled waves (a), (b) and (c) green.

Wave v pink unfolded as a zigzag labeled waves (a), (b) and (c) green.

Minor wave 2 blue was a shallow second wave and it unfolded as a zigzag correction labeled waves a, b and c pink.

Minor wave 3 blue unfolded as an impulse labeled waves i through v pink.

This count expects that wave 4 blue is likely complete as a zigzag labeled waves a, b and c pink and that wave 5 blue has started unfolded downwards.

Within wave 5 blue waves i and ii pink are likely complete and wave iii pink is underway.

This count would be confirmed by movement below 1.3878.

At 1.3833 wave (v) green would reach 0.618 of wave (i) green and at 1.3810 wave iii pink would reach 2.618 of wave i pink. Finally, at 1.3644 wave 5 blue would reach equality with wave 1 blue.

This count would be invalidated by movement above 1.4571 as within wave iii pink no second wave may retrace more than 100 % of its first wave.

Main Hourly Wave Count


N.B.: This count is presented on 2-hours chart for clarification purposes.

This count expects that minor waves 1 through 4 blue are likely complete and that minor wave 5 blue has started unfolding downwards.

This count expects that wave 4 blue unfolded as a zigzag labeled waves a, b and c pink and that wave 5 blue has started unfolding towards the downside.

Wave a pink unfolded as a leading diagonal labeled waves (i) through (v) green.

Wave c pink unfolded as an impulse labeled waves (i) through (v) green with wave (iv) green unfolding as an expanded flat correction.

Within wave 5 blue, it is likely that waves i through iii pink are complete and that wave iv pink has started unfolding upwards.

Wave i pink unfolded as an impulse labeled waves (i) through (v) green and wave (iii) green unfolded as an impulse labeled waves i through v orange with wave v orange being a truncated fifth wave.

Wave ii pink unfolded as double combination labeled waves (w), (x) and (y) green and that wave iii pink is unfolding downwards.

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

Wave (i) green unfolded as an impulse labeled waves i through v orange with wave i orange unfolding as a leading diagonal labeled waves 1 through 5 purple.

Wave (ii) green unfolded as a three wave structure labeled waves a, b and c orange.

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

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

As far as MACD study goes, MACD is forming a bullish divergence as MACD failed to follow price action as price action made a new low while MACD readings failed to reflect that action.

This count would be confirmed by movement above 1.4043 and it should be noted that this confirmation point is a preliminary confirmation point and it would be updated as wave iv pink starts unfolding upwards.

At 1.4015 wave iv pink would reach 0.236 of wave iii pink and at 1.4121 wave iv pink would reach 0.382 of wave iii pink and at 1.4206 wave iv pink would reach 50% of wave iii pink.

This count would be invalidated by movement below 1.3841 as wave B within wave iv pink may not retrace more than 100 % of its A wave. As well this count would be invalidated by movement above 1.4379 as wave iv pink may not enter the price territory of wave i pink.

Alternate Hourly Wave Count


N.B.: This count is presented on 2-hours chart for clarification purposes.

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

This count expects that wave (v) green is incomplete and that wave (v) green has more to offer towards the downside.

This count would be confirmed by movement below 1.3841.

At 1.3833 wave (v) green would reach 0.618 of wave (i) green and at 1.3810 wave iii pink would reach 2.618 of wave i pink.

This count would be invalidated by movement above 1.4043 as within wave (v) green, no second wave may retrace more than 100 % of its first wave.

2 thoughts on “GBPUSD 26th February, 2016”

  1. Hi. For the GBPUSD hourly counts. Do you use the 1 hour chart or 2 hour chart?. I am trying to follow the counts on MT4 platform that does not have 2 hour charts.

    1. Hello Rustum,

      First of all, welcome to EWF and I hope you find EWF beneficial and informative :).

      The hourly counts are quite flexible, meaning that it usually is a one hour chart but I admit that recently I have been adding a note below the hourly chart mentioning that the chart above is presented on a 2 hours chart for clarification purposes.

      The aim here is to provide a chart that captures the whole wave structure so that members can quickly identify the structure and process the pattern. I will try my best to add one hour charts and I hope to strike the balance between a clear pattern with enough information as “too much” information on the chart tend to confuse new members and they would not know where to start.

      I hope I managed to answer your question and please do not hesitate to leave a comment if you have further questions.

      Sincerely,
      Nady Laymoud

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