GBPUSD 26th July, 2016

Cable started the day by moving downwards invalidating the hourly count proving that wave (b) green had more to offer downwards as we discussed on the weekly analysis here in regards to the first alternate count.

We are modifying the subdivisions within wave (b) green for the main count and the alternate count expects Cable to unfold downwards sharply within a motive wave.

As always, we will wait for either count`s confirmation to be reached to determine the highly probable count.

Synopsis By movement above 1.3316 and eventually 1.3481 Cable would be expected to find resistance at 1.3595 level. If exceeded, Cable would be expected to find resistance at 1.3643 and finally 1.3742. However, if Cable unfolded downwards below 1.2794 Cable would be expected to find support at 1.2748.

Main Hourly Count

– Invalidation Point: 1.2794 — 1.5020
– Confirmation Point: 1.3316 — 1.3481
– Upwards Targets: 1.3595 — 1.3643 — 1.3742
– Wave number: (c) green
– Wave structure: Motive
– Wave pattern: ُImpulse\Ending diagonal

Alternate Hourly Count

– Invalidation Point: 1.3481
– Confirmation Point: 1.2794
– Downwards Targets: 1.2748
– Wave number: (iii) green
– Wave structure: Motive
– Wave pattern: ُImpulse

Elliott Wave chart analysis for the GBPUSD for 26th July, 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 are complete and intermediate wave (3) black is unfolding downwards.

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

Within intermediate wave (3) black it is expected that minor waves 1 and 2 blue are complete and that wave 3 blue has started unfolding downwards.

Wave 1 blue unfolded as an impulse labeled waves i through v pink.

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

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

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

Wave iii pink unfolded as a zigzag labeled waves a, b and c orange.

Wave iv pink unfolded as a zigzag labeled waves a, b and c orange.

Wave v pink unfolded as a zigzag labeled waves a, b and c orange.

Minor wave 2 blue unfolded upwards likely as a double zigzag correction labeled waves w, x and y pink.

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

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

Within minor wave 3 blue, it is likely that wave i pink is complete and that wave ii pink has started unfolding upwards as a zigzag labeled waves (a), (b) and (c) green with waves (a) and (b) green complete and Cable is expected to unfold upwards within wave (c) green.

This count would be confirmed by movement above 1.3481.

At 1.3643 wave ii pink would reach 0.382 of wave i pink.

This count would be invalidated by movement above 1.5020 as wave ii pink may not retrace more than 100 % of wave i pink and as well this count would be invalidated by movement below 1.2794 as within wave ii pink no B wave may retrace more than 100 % of its A wave.

Main Hourly Wave Count

This count expects that minor wave 2 blue is complete as a double zigzag labeled waves w, x and y pink and that wave 3 blue is underway.

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

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

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

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

Within wave 3 blue it is likely that wave i pink is complete and that wave ii pink has started unfolding upwards.

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

Wave (iv) green unfolded as a triangle labeled waves a through e orange.

Within wave ii pink, waves (a) and (b) green are likely complete with wave (a) green unfolding as an impulse labeled waves i through v orange.

Wave (b) green unfolded as a double zigzag labeled waves w, x and y orange with each wave within that double zigzag unfolding as a zigzag labeled waves A, B and C purple.

This count would be initially confirmed by movement above 1.3316 and the final confirmation point is at 1.3481. Once Cable starts to subdivide upwards we will be able to specify short-term confirmation points and targets.

At 1.3595 wave (c) green would reach 0.786 of wave (a) green and at 1.3643 wave ii pink would reach 0.382 of wave i pink and finally at 1.3742 wave (c) green would reach equality with wave 100 % of wave (a) green.

This count would be invalidated by movement above 1.5020 as wave ii pink may not retrace more than 100 % of wave i pink and as well this count would be invalidated by movement below 1.2794 as wave (b) green may not retrace more than 100 % of wave (a) green and it should be noted that the invalidation point would be moved to the end of wave (b) green once we have confirmation on the hourly chart that wave (c) green is unfolding upwards.

Alternate Hourly Wave Count

The difference between both main and alternate counts is within the subdivisions of wave ii pink as this count expects that wave ii pink is complete and that wave iii pink is at its very early stages. It should be noted that this count is considered an alternate count as it does not provide the best fit.

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

Within wave iii pink waves (i) and (ii) green are likely complete and wave (iii) green is unfolding downwards.

This count would be confirmed by movement below 1.2794.

At 1.2748 wave (iii) green would reach 1.618 of wave (i) green.

This count would be invalidated by movement above 1.3481 as wave (ii) green may not retrace more than 100 % of wave (i) green and it is worth noting that the invalidation point would be moved to the end of wave (ii) green once we have confirmation on the hourly chart that wave (iii) green is unfolding downwards.

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