GBPUSD: Cable`s New Year Analysis

First off, let me take the chance to wish you a marvelous new year. May all of your plans, wishes and goals come true for you!

On our previous analysis, we mentioned that evidence suggested the completion of wave (4) black. As expected, Cable continued unfolding downwards and we are updating our charts to reflect the most recent price action.

Main count expects that Cable would resume its downtrend following the completion of an upwards correction. On the other hand, the alternate count expects that Cable`s upwards correction is mature and that Cable is getting to ready to make new lows.

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

Main Count

– Invalidation Point: 1.2571 — 1.2200
– Confirmation Point: 1.2311
– Upwards Targets: 1.2324 — 1.2400
– Wave number: iv pink
– Wave structure: Corrective
– Wave pattern: Zigzag

Alternate Count

– Invalidation Point: 1.2311
– Confirmation Point: 1.2200
– Downwards Targets: 1.2185 — 1.2107
– Wave number: v pink
– Wave structure: Motive
– Wave pattern: ُImpulse / Ending diagonal

Elliott Wave chart analysis for the GBPUSD for 29th December, 2016. Please click on the charts below to enlarge.

Main Wave Count


N.B.: This count is presented on the 6-hours bar chart for clarification purposes.

This count expects that within wave C maroon waves (1) through (4) black are complete and that intermediate wave (5) black is at its very early stages.

Wave (4) black is likely complete as a triple zigzag correction labeled waves W, X, X, Y and Z blue.

Wave Y blue unfolded as a flat correction labeled waves a, b and c pink.

Wave a pink unfolded as a three wave structure labeled waves (a), (b) and (c) green.

Wave b pink unfolded as a three wave structure labeled waves (a), (b) and (c) green.

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

The second wave X blue unfolded as a zigzag labeled waves a, b and c pink.

Wave Z blue unfolded as zigzag labeled waves a, b and c pink.

Wave b pink unfolded as a triangle labeled waves (a) through (e) green.

Wave c pink unfolded as an ending diagonal labeled waves (i) through (v) green.

This count expects that within wave (5) black waves i through iii pink are complete and wave iv pink has started unfolding upwards.

Wave ii pink unfolded as an expanded flat correction labeled waves (a), (b) and (c) green with wave (c) green unfolding as an impulse labeled waves i through v orange.

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

This count would be confirmed by movement above 1.2311.

At 1.2324 wave iv pink would reach 0.236 of wave iii pink and at 1.2400 wave iv pink would reach 0.382 of wave iii pink.

This count would be invalidated by movement below 1.2200 as within iv pink no B wave may retrace more than 100 % of its A wave. As well, this count would be invalidated by movement above 1.2571 as wave iv pink may not enter the price territory of wave i pink.

Alternate Wave Count


N.B.: This count is presented on the 6-hours bar chart for clarification purposes.

This count expects that wave iv pink is complete and that wave v pink has started unfolding towards the downside.

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

Wave (v) green unfolded as an impulse labeled waves i through v orange with wave iv orange unfolding as a triangle.

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

This count would be confirmed by movement below 1.2200.

At 1.2185 wave v pink would reach 0.618 of wave i pink and at 1.2107 wave v pink would reach equality with wave i pink.

This count would be invalidated by movement above 1.2311 as within wave v pink no second wave may retrace more than 100 % of its first wave.

Scroll to Top