GBPUSD 30th August, 2016

According to the main count, Cable spent Tuesday`s session forming a flat correction which is commonly characterized by being a shallow sideways movement.

Main count expects Cable to unfold downwards to complete a second wave correction while the alternate count expects that Cable`s downwards correction is complete and that a third wave is at its early stages.

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

Synopsis By movement below 1.3059 Cable would be expected to find support at 1.3037 and if exceeded then to 1.3029. However, if Cable unfolded upwards above 1.3280 Cable would be expected to find resistance at 1.3317 and if exceeded Cable would be expected to find support at 1.3475.

Main Hourly Count

– Invalidation Point: 1.3280 — 1.2865
– Confirmation Point: 1.3059
– Downwards Targets: 1.3037 — 1.3029
– Wave number: ii orange
– Wave structure: Corrective
– Wave pattern: ُZigzag

Alternate Hourly Count

– Invalidation Point: 1.3059 — 1.5020
– Confirmation Point: 1.3280
– Upwards Targets: 1.3317 — 1.3475
– Wave number: iii orange
– Wave structure: Motive
– Wave pattern: ُImpulse

Elliott Wave chart analysis for the GBPUSD for 30th August, 2016. Please click on the charts below to enlarge.

Main Daily Wave Count

For the long term, 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 within wave ii pink wave (a) green is complete and that wave (b) green is highly likely complete as well and wave (c) green is expected to be unfolding towards the upside.

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

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

Wave x orange unfolded as zigzag labeled waves A, B and C purple where wave A purple unfolded as an expanding leading diagonal and wave C purple unfolded as an impulse.

Wave y orange unfolded as a zigzag labeled waves A, B and C purple and it is highly likely that wave (c) green has started subdividing upwards.

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.

Wave C purple unfolded as an ending diagonal labeled waves (1) through (5) aqua.

Within wave (c) green, wave i orange is complete and that wave ii orange is underway.

Wave i orange unfolded as a leading diagonal labeled waves 1 through 5 purple with each wave within that leading diagonal unfolding as a zigzag labeled waves (A), (B) and (C) aqua.

Within wave ii orange it is likely that waves A and B purple are complete and wave C purple is underway.

As far as MACD study goes, MACD is starting to show a divergence between the ends of waves i and ii orange which suggests that wave ii orange is near completion and the divergence agrees with the main count`s view.

This count would be confirmed by movement below 1.3059.

At 1.3037 wave C purple would reach 0.382 of wave A purple and at 1.3029 wave ii orange would reach 0.618 of wave i orange.

This count would be invalidated by movement above 1.3280 as within wave ii orange no B wave may retrace more than 100 % of wave its A wave and as well this count would be invalidated by movement below 1.2865 as wave ii orange may not retrace more than 100 % of wave i orange.

Alternate Hourly Wave Count

This count expects that wave ii orange is mature and that wave iii orange is at its early stages.

This count is presented as an alternate because of the depth of wave ii orange as it is common for second wave to be deep corrections specially following a leading diagonal.

This count would be confirmed by movement above 1.3280.

At 1.3317 wave iii orange would reach 0.618 of wave i orange which is a very conservative target for wave iii orange and at 1.3475 wave iii orange would reach equality with wave i orange.

This count would be invalidated by movement above 1.5020 as wave ii pink may not retrace more than 100 % of wave i pink. As well, this count would be invalidated by movement below 1.3059 as within wave iii orange no second wave may retrace more than 100 % or its first wave.

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