On our previous analysis the main count expected Cable to unfold upwards and main count was confirmed and both targets were reached and exceeded.
In today`s analysis, we will be focusing on the daily chart viewing mid-term views. Main count expects Cable to unfold downwards within a fifth wave and on the other hand, the alternate count expects Cable to continue unfolding upwards to complete a fourth wave correction.
As always, we will wait for either count`s confirmation point to be reached to determine the highly probable count.
– Invalidation Point: 1.2915
– Confirmation Point: 1.1970
– Downwards Targets: 1.1950 — 1.1779
– Wave number: (v) green
– Wave structure: Motive
– Wave pattern: ُImpulse/Ending diagonal
– Invalidation Point: 1.4566 — 1.1970
– Confirmation Point: 1.2674 — 1.3059
– Upwards Targets: 1.2904 — 1.3483
– Wave number: (4) black
– Wave structure: Corrective
– Wave pattern: ُZigzag
Elliott Wave chart analysis for the GBPUSD for 24th November, 2016. Please click on the charts below to enlarge.
Main Wave Count
This count expects that within wave C maroon waves (1) and (2) black are complete and wave (3) black is unfolding downwards.
Within wave (3) black, waves 1 and 2 blue are complete and wave 3 blue is underway.
Within wave 3 blue, waves i and ii pink are mature and wave iii pink is unfolding downwards as an impulse with waves (i) through (iv) green complete and wave (v) green has started unfolding downwards.
This count would be confirmed by movement below 1.1970.
At 1.1950 wave (v) green would reach 50 % of the distance traveled from the start of wave (i) green to the end of wave (iii) green and at 1.1779 wave (v) green would reach 0.618 of the distance traveled from the start of wave (i) green to the end 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 it is worth noting that the invalidation point would be moved to the end of wave (iv) green once we have confirmation on the daily chart that wave (v) green is underway.
Alternate Wave Count
This count expects that wave C maroon is underway with waves (1) through (3) black complete and wave (4) black is underway.
Wave (3) black unfolded as an impulse labeled waves 1 through 5 blue.
Wave 1 blue unfolded as an impulse labeled waves i through v pink.
Wave 2 blue unfolded as a double zigzag labeled waves w, x and y pink.
Wave 4 blue unfolded as a triangle labeled waves a through e pink.
This count would be initially confirmed by movement above 1.2674 and the final confirmation point is at 1.3059.
At 1.2904 wave (4) black would reach 0.236 of wave (3) black and at 1.3483 wave (3) black would reach 0.382 of wave (3) black.
This count would be invalidated by movement above 1.4566 as wave (4) black may not enter the price territory of wave (1) black and as well this count would be invalidated by movement below 1.1970 as within wave (4) black no B wave may retrace more than 100 % of its A wave.