GBPUSD 27th October, 2016

Cable continued unfolding upwards invalidating the main hourly count`s invalidation point and in the process increasing the probabilities of the alternate hourly count.

Recent upwards movement suggests that Cable`s upwards correction is incomplete and that Cable has more to offer upwards and we will explore that count`s details shortly.

Today`s alternate count expects that a fifth wave has started unfolding downwards as an ending diagonal.

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

Synopsis By movement above 1.2333 and eventually 1.2484 Cable would be expected to find resistance at 1.2340 and if exceeded then to 1.2457 and if exceeded then to 1.2515. By movement below 1.2082 Cable would be expected to find support at a target zone that starts at 1.2029 and ends at 1.2022.

Main Hourly Count

– Invalidation Point: 1.2915 — 1.2082
– Confirmation Point: 1.2333 — 1.2484
– Upwards Targets: 1.2340 — 1.2457 — 1.2515
– Wave number: 3 purple
– Wave structure: Motive
– Wave pattern: ُImpulse

Alternate Hourly Count

– Invalidation Point: 1.2333
– Confirmation Point: 1.2082
– Downwards Targets: 1.2029 — 1.2022
– Wave number: (v) green
– Wave structure: Motive
– Wave pattern: ُEnding diagonal

Elliott Wave chart analysis for the GBPUSD for 27th October, 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, this count expects that waves i and ii pink are complete and that wave iii pink has started unfolding downwards.

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

Within wave iii pink, waves (i) through (iii) green are likely complete and wave (iv) green is underway.

This count would be confirmed by movement above 1.2484.

At 1.2515 wave (iv) green would reach 50 % of wave (iii) green and at 1.2596 wave c orange would reach equality with wave a orange.

This count would be invalidated by movement above 1.2915 as wave (iv) green may not enter the price territory of wave (i) green and as well this count would be invalidated by movement below 1.1970 as within wave (iv) green no B wave may retrace more than 100 % of its A wave.

Main Hourly Wave Count

This count expects that within wave iii pink waves (i) through (iii) green are complete and that wave (iv) green is unfolding upwards.

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

Wave i orange unfolded as an impulse labeled waves 1 through 5 purple.

Wave iii orange unfolded as an impulse labeled waves 1 through 5 purple.

Wave iv orange unfolded as a zigzag labeled waves A, B and C purple.

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

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

Wave (iv) green is unfolding as a zigzag correction labeled waves a, b and c orange with waves a and b orange complete and wave c orange is underway.

Wave b orange unfolded as a zigzag labeled waves A, B and C purple with wave B purple unfolding as a triangle labeled waves (A) through (E) aqua.

Within wave c orange it is likely that waves 1 and 2 purple are complete and that wave 3 purple has started unfolding upwards.

This count would be initially confirmed by movement below 1.2333 and the final confirmation point is at 1.2484.

At 1.2340 wave 3 purple would reach equality with wave 1 purple and at 1.2457 wave 3 purple would reach 1.618 of wave 1 purple. Finally at 1.2515 wave (iv) green would reach 50 % of wave (iii) green.

This count would be invalidated by movement above 1.2915 as wave (iv) green may not enter the price territory of wave (i) green and as well this count would be invalidated by movement below 1.2082 as wave 2 purple may not retrace more than 100 % of wave 1 purple. It is worth noting that the invalidation point would be moved to the end of wave 2 purple once we have confirmation on the hourly chart that wave 3 purple is underway.

Alternate Hourly Wave Count

The difference between both main and alternate counts is within the subdivisions of wave (iv) green as this count expects that wave (iv) green is mature and that wave (v) green has started unfolding downwards.

Wave (v) green is seen unfolding downwards as an ending diagonal labeled waves i through v orange with waves i and ii orange complete and wave iii orange is underway.

Wave i orange unfolded as a zigzag labeled waves A, B and C purple.

Wave ii orange unfolded as a zigzag labeled waves A, B and C purple.

Within wave iii orange it is expected that waves A and B purple are complete and wave C purple is unfolding downwards.

This count would be confirmed by movement below 1.2082.

We have a target zone that starts at 1.2029 as at that level wave iii orange would reach 0.786 of wave i orange and at 1.2022 wave C purple would reach equality with wave A purple.

This count would be invalidated by movement above 1.2333 as wave B purple may not retrace more than 100 % of wave A purple. It is worth noting that the invalidation point should be moved to the end of wave B purple once we have confirmation on the hourly chart that wave C purple is unfolding downwards.

Food For Thought:
An alternate daily count exists which expects that within wave (3) black, waves 1 through 4 blue are complete and that wave 5 blue is unfolding downwards. We are including the chart for that count for clarification purposes.

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