Archives for August 2016
Price kept bouncing up and down over the past week, although it seems to have a clear bullish spirit to it.
After reviewing the new developments and upon suggestion from Nady Laymoud, our brilliant GBP/USD analyst, it’s clear that it’s now time to abandon a previous count and adopt one more fitting for all the market movement over the past couple of weeks.
We’re updating our counts to reflect the most recent price action and to present tighter targets and invalidation points.
Weekly Main Count
– Invalidation Point: 1.1616 – 1.0913
– Confirmation Point: 1.1234
– Upwards Target: 1.1267 – 1.1327
– Wave number: Minuette (v)
– Wave structure: Actionary Corrective
– Wave pattern: Zigzag
Weekly Alternate Count
– Invalidation Point: 1.1616 – 1.0525
– Confirmation Point: 1.0913
– Downwards Target: 1.0942 – 1.0879
– Wave number: Blue D
– Wave structure: Corrective
– Wave pattern: Double Zigzag
Please click on the charts below to enlarge.
The bigger picture sees that the euro is moving towards the downside in teal wave x, which is forming a double zigzag labeled maroon waves W, X and Y.
Maroon wave Y is forming a zigzag labeled black waves (A), (B) and (C).
Black wave (A) formed an impulse labeled blue waves 1 through 5.
Black wave (B) is forming a contracting triangle labeled blue waves A through E.
Main Weekly Wave Count
Within black wave (B), blue wave D formed a zigzag labeled pink waves a, b and c, retracing a bit less than 61.8% the length of blue wave B.
Blue wave E is forming a zigzag labeled pink waves a, b and c.
Within it, pink wave a is forming a leading diagonal labeled green waves (i) through (v).
Within it, green waves (i) through (iv) are complete.
This count expects the euro to move towards the upside in green wave (v) to complete pink wave a. This will be confirmed by movement above 1.1234.
At 1.1267 green wave (v) would reach 78.6% the length of green wave (iii), then at 1.1327 it would reach 100% of its length.
This wave count is invalidated by movement above 1.1616 as blue wave E of a contracting triangle may not move beyond the start of blue wave D. It’s also invalidated by movement below 1.0913 as pink wave b of a zigzag may not move beyond the start of pink wave a.
Alternate Weekly Wave Count
This alternate count sees that blue wave D is still unfolding as a double zigzag labeled pink waves w, x and y.
Within it, pink wave x is forming a triple zigzag labeled green waves (w), (y) and (z).
This count expects the euro soon to move towards the downside in pink wave y to complete blue wave D.
At 1.0942 blue wave D would retrace 61.8% of blue wave C, then at 1.0879 it would reach 61.8% the length of blue wave B.
This wave count is invalidated by movement above 1.1616 as pink wave x of a double zigzag may not move beyond the start of pink wave w. It’s also invalidated by movement below 1.0525 as blue wave D of a contracting triangle may not move beyond the start of blue wave C.