GBPUSD: Painting Cable Red!

On our previous analysis, main count warned of a bear trap and that Cable would reverse directions and unfold upwards. Cable unfolded as expected and upwards targets were reached and exceeded.

This week`s main count expects that Cable`s upwards correction is highly likely complete and that Cable is about to resume its downtrend within a third wave.

As illustrated in Prechter and Frost book “Elliott Wave Principle”, a third wave is a wonder to behold, violent in nature and commonly travel fast in short periods of time.

On the other hand, the alternate count -presented on a daily chart- expects that wave (4) black of intermediate degree has more to offer upwards before reversing directions within wave (5) black.

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

Main Count

– Invalidation Point: 1.2674
– Confirmation Point: 1.2447
– Downwards Targets: 1.2447 — 1.2396 — 1.2351
– Wave number: (iii) green
– Wave structure: Motive
– Wave pattern: Impulse

Alternate Count

– Invalidation Point: 1.4566 — 1.1985
– Confirmation Point: 1.2674
– Upwards Targets: 1.2722 — 1.2905 — 1.3109
– Wave number: c pink
– Wave structure: Motive
– Wave pattern: Impulse

Elliott Wave chart analysis for the GBPUSD for 30th January, 2017. Please click on the charts below to enlarge.

Main Wave Count


N.B.: This count is presented on the 8-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 unfolding downwards.

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

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 wave 1 blue is complete and that wave 2 blue is underway.

Wave 1 blue unfolded as an impulse labeled i through v pink.

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.

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

Wave v pink unfolded as an ending diagonal labeled waves (i) through (v) green with wave (v) green being a truncated fifth wave.

Wave 2 blue unfolded as a zigzag correction labeled waves a, b and c pink.

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

Within wave 3 blue, wave i pink is unfolding downwards likely as an impulse with waves (i) and (ii) green complete and wave (iii) green is underway.

It would be confirmed that wave (iii) green is unfolding downwards by movement below 1.2466.

At 1.2447 wave (iii) green would reach equality with wave (i) green and at 1.2396 wave (iii) green would reach 1.382 of wave (i) green and finally at 1.2351 wave (iii) green would reach 1.618 of wave (i) green.

This count would be invalidated by movement above 1.2602 as within wave (iii) green no second wave may retrace more than 100 % of its first wave.

Alternate Wave Count


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

The alternate daily count expects that wave (4) black is incomplete and that it has more to offer towards the upside.

Wave (4) black is seen unfolding as a flat correction labeled waves A, B and C blue with waves A and B blue complete and wave C blue is unfolding upwards.

Wave A blue unfolded as a zigzag labeled waves a, b and c pink with wave a pink unfolding as an impulse labeled waves (i) through (v) green.

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

This count expects that wave c pink is unfolding upwards as a five wave structure to complete wave (4) black.

Within wave c pink, it is likely that waves i through iv pink are complete and that wave v pink is at it early stages.

This count would be confirmed by movement above 1.2674.

At 1.2722 wave v pink would reach 0.618 of wave iii pink and at 1.2905 wave (4) black would reach 0.236 of wave (3) black and at 1.3109 wave C blue would reach 1.382 of wave A blue.

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 1.1985 as within wave C blue no second wave may retrace more than 100 % of its first wave. It should be noted that the invalidation point would be moved to the end of wave iv pink once we have confirmation on the daily chart that wave v pink is unfolding upwards.

Scroll to Top