GBPUSD 28th July, 2017

On Friday’s session, Cable unfolded higher in line with the outlook. At this juncture, the advance off wave (iv) green low is in a three-wave pattern, leaving us with two possible scenario.

The main hourly count expects Cable to continue its upward thrust while the alternate count expects that downward pressure has resulted in a truncation. If so, we should expect a swift decline from these levels to confirm the bearish alternate.

We will wait for either counts’ confirmation point to be reached to determine the highly probable count.

Synopsis By movement above 1.3160, Cable would be expected to find resistance at 1.3179 and if exceeded then to 1.3191. Conversely, if Cable unfolded below 1.3050, it would initially be expected to find support at 1.2807.

Main Hourly Count

– Invalidation Point: 1.4566 — 1.3050
– Confirmation Point: 1.3160
– Upwards Targets: 1.3164 — 1.3191
– Wave number: (v) green
– Wave structure: Motive
– Wave pattern: Zigzag

Alternate Hourly Count

– Invalidation Point: 1.3152
– Confirmation Point: 1.3050
– Downwards Targets: 1.2424
– Wave number: 1 blue
– Wave structure: Motive
– Wave pattern: Impulse\Leading diagonal

Elliott Wave chart analysis for the GBPUSD for 28th July, 2017. Please click on the charts below to enlarge.

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 (3) black are complete and intermediate wave (4) black is in its late 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 is unfolding as a triple zigzag labeled waves W, X, Y, X and Z blue.

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

First wave X blue unfolded as a triangle labeled waves a through e pink.

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

Within wave Z blue, waves a and b pink are complete and wave c pink is unfolding upwards.

This count would be confirmed by movement above 1.3160.

At 1.3252 wave c pink would reach equality with wave a pink. Finally, at 1.3270 wave Z blue would reach equality with wave Y 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. As well, this count would be invalidated by movement below 1.2589 as within wave Z blue no B wave may retrace more than 100 % of its A wave.

Main Hourly Wave Count

The main count expects that Wave Z blue is unfolding upwards with waves a and b pink complete and wave c pink is underway.

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

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

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

Wave c pink is likely unfolding as an ending diagonal with waves (i) through (iv) green complete and wave (v) green is in its early stages.

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

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

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

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

Wave (iii) green unfolded as a zigzag labeled waves a, b and c orange with wave c orange unfolding as an impulse labeled waves 1 through 5 purple.

This count will be confirmed by movement above 1.3160.

At 1.3164 wave (v) green would reach 0.5 of wave (iii) green and at 1.3191 wave (v) green would reach 0.618 of wave (i) green.

This count would be invalidated by movement below 1.3050 as within wave (v) green no B wave may retrace more than 100 % of its A wave.

Alternate Hourly Wave Count

The only difference between both main and alternate counts is within the subdivisions of wave (v) green.

The alternate count expects that the advance off 1.3050 — i.e., wave (iv) green’s low — has completed the minimum requirement for wave (v) green. If downward pressure is present, it might be the causing factor behind such a truncation. However, since truncated waves should always be labeled after the fact to avoid confusion, this count is considered alternate unless proven otherwise.

This count will be confirmed by movement below 1.3050.

An initial target is at 1.2424 where the length of wave 1 of 5 would reach 0.618 of the prior wave.

The count would be invalidated by movement above 1.3152 as within wave 1 blue no second wave may retrace more than 100 % of its first wave.

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