GBPUSD 27th February, 2017

Cable ended the day almost where it started failing to reach the alternate count`s confirmation point before reversing directions and moving upwards.

Today we will be discussing three hourly charts (main hourly, first alternate and second alternate counts). Both first and second alternate counts expects upwards movement but they differ in extent and wave structure.

Main hourly count expects Cable to unfold downwards as an impulse within a third wave.

First alternate count expects that Cable`s upwards correction has more to offer upwards in a three wave structure and that upwards movement should prove limited.

Second alternate count expects that a higher degree complex correction is underway towards the upside.

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

Synopsis By movement below 1.2383 Cable would be expected to find support at 1.2370 and if exceeded then to 1.2304 and finally to 1.2194. If Cable unfolded above 1.2480 Cable would be expected to find resistance 1.2500.

Main Hourly Count

– Invalidation Point: 1.2480
– Confirmation Point: 1.2383
– Downwards Targets: 1.2370 — 1.2304 — 1.2194
– Wave number: iii orange
– Wave structure: Motive
– Wave pattern: Impulse

First Alternate Hourly Count

– Invalidation Point: 1.2570 — 1.2383
– Confirmation Point: 1.2480
– Upwards Targets: 1.2500
– Wave number: ii orange
– Wave structure: Corrective
– Wave pattern: Double zigzag

Second Alternate Hourly Count

– Invalidation Point: 1.2383
– Confirmation Point: 1.2570
– Upwards Targets: 1.2617
– Wave number: ii pink
– Wave structure: Corrective
– Wave pattern: Double zigzag

Elliott Wave chart analysis for the GBPUSD for 27th February, 2017. 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) through (4) black are complete and intermediate wave (5) black is at its very early stages.

Intermediate 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 correction labeled waves w, x and y pink.

Wave 4 blue unfolded as a triangle labeled waves a through e pink.

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

This count would be confirmed by movement below 1.1970.

We have a very initial target for the completion of wave (5) black at 1.1154 as at that level wave (5) black would reach 0.618 of wave (1) black. It is worth noting that we will be able to calculate short term targets once wave (5) black starts to subdivide towards the downside.

This count would be invalidated by movement above 1.2776 as within wave (5) black wave 2 blue may not retrace more than 100 % of wave 1 blue.

Main Hourly Wave Count


N.B.: This count is presented on 2-hours chart for clarification purposes.

This count expects that within wave (5) black waves 1 and 2 blue are highly likely complete and wave 3 blue has started unfolding downwards.

Wave 2 blue is seen as a double zigzag labeled waves w, x and y pink.

Within wave 3 blue, it is likely that wave i pink is starting to unfold downwards with waves (i) and (ii) green complete and wave (iii) green is underway.

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

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

Wave iv orange unfolded as a triangle labeled waves A through E purple.

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

Wave x orange unfolded as a triangle labeled waves A through E purple.

Within wave (iii) green it is expected that waves i and ii orange are mature and that wave iii orange is underway.

This count would be confirmed by movement below 1.2383.

At 1.2370 wave iii orange would reach 0.618 of wave i orange and at 1.2304 wave iii orange would reach equality with wave i orange and at 1.2194 wave iii orange would reach 1.618 of wave i orange.

This count would be invalidated by movement above 1.2480 as within wave iii orange no second wave may retrace more than 100 % of its first wave.

First Alternate Hourly Wave Count


N.B.: This count is presented on 2-hours chart for clarification purposes.

This count expects that wave (ii) green is mature and that wave (iii) green is at its very early stages unfolding Downwards with wave i orange complete and wave ii orange is unfolding upwards.

Wave ii orange is unfolding as a double zigzag labeled waves w, x and y purple with waves w and x purple complete and wave y purple is unfolding upwards.

This count would be confirmed by movement above 1.2480.

At 11.2500 wave ii orange would reach 0.618 of wave i orange.

This count would be invalidated by movement above 1.2570 as wave ii orange may not retrace more than 100 % of wave i orange and as well, this count would be invalidated by movement below 1.2383 as within wave ii orange no X wave may retrace more than 100 % of its W wave.

Second Alternate Hourly Wave Count


N.B.: This count is presented on 2-hours chart for clarification purposes.

This count expects that wave ii pink is incomplete and that it has much more to offer upwards.

Within wave ii pink, it is likely that waves (w) and (x) green are complete and that wave (y) green has started unfolding upwards.

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

Wave (x) green unfolded as a flat correction labeled waves a, b and c orange with wave b orange unfolding as a zigzag labeled waves A, B and C purple.

Wave B purple unfolded as a triangle labeled waves (A) through (E) aqua.

This count would be confirmed by movement above 1.2570.

At 1.2617 wave (y) green would reach equality with wave (w) green.

This count would be invalidated by movement below 1.2383 as within wave (y) green no B wave may retrace more than 100 % of its A wave.

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