Cable inched up and the cited first target was reached and exceeded by 12 pips before reversing gears and unfolding lower. We will discuss the significance of the decline off yesterday’s 1.3384 high in details shortly.
As always we will wait for either count’s confirmation point to be reached to determine the highly probable count.
Synopsis: By moving above 1.3384, Cable would then be expected to move upward toward 1.3417 levels. On the other hand, by moving below 1.3062, Cable is expected to move lower toward the 1.2749 level, while it remains below 1.3384.
Main Hourly Count
– Invalidation Point: 1.3229 — 1.3659
– Confirmation Point: 1.3384
– Upwards Targets: 1.3417
– Wave number: ii pink
– Wave structure: Corrective
– Wave pattern: Zigzag
Alternate Hourly Count
– Invalidation Point: 1.3384
– Confirmation Point: 1.3062
– Downwards Targets: 1.2749
– Wave number: (iii) green
– Wave structure: Motive
– Wave pattern: Impulse
Elliott Wave chart analysis for the GBPUSD for 27th November, 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.
Wave (4) black is likely complete as a triple zigzag labeled waves W, X, Y, X and Z blue.
Within wave (5) black, wave 1 blue is underway with wave i pink complete and wave ii pink is in its very late stages.
It would be confirmed that wave ii pink has higher highs in store by movement above 1.3360.
At 1.3371 wave iii orange of wave (c) green would reach 1.618 of wave i orange of wave (c) green and at 1.3417 where wave ii pink would reach 0.618 of wave i pink.
This count would be invalidated by movement above 1.3659 as wave ii pink may not retrace more than 100 % of wave i pink.
This count would be invalidated by movement above 1.3659 as wave ii pink may not move beyond the start of wave i pink. Moreover, this count would be invalidated by movement below 1.3039 as within wave (c) green no second wave may move beyond the start of its first wave.
Main Hourly Wave Count
The main count sees that pink wave ii within wave 1 blue is in its late stages as a zigzag labeled waves (a), (b) and (c) green with waves (a) and (b) green complete and wave (c) green is underway.
Wave (a) green unfolded as a leading diagonal labeled waves i through v orange.
Wave (b) 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.
Within wave (c) green waves i and iii orange are complete and it is still debatable whether wave iv orange has bottomed.
As faar as MACD study goes, MACD has failed to reflect price action as MACD did not register a higher high corresponding to the most recent price action high, thus creating a bearish divergence. If we are on the right track, MACD should continue to register lower highs as price action unfold up to complete wave ii pink.
This count would be confirmed by movement above 1.3384.
At 1.3417 where wave ii pink would reach 0.618 of wave i pink.
This count would be invalidated by movement above 1.3659 as wave ii pink may not move beyond the start of wave i pink. Moreover, this count would be invalidated by movement below 1.3229 as wave iv orange may not enter the price territory of wave i orange.
Alternate Hourly Wave Count
This count expects that wave ii pink is complete as a double zigzag and that wave iii pink is in its early stages.
Wave ii pink unfolded as a double zigzag labeled waves (w), (x) and (y) green.
Wave (x) 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.
An aggressive confirmation point exists by movement below 1.3230, however this level remains an aggressive level at this stage. This count would be initially confirmed by movement below 1.3062 and the final confirmation point is at 1.3039.
At 1.2749 wave iii pink would reach equality with wave i pink.
This wave count would be invalidated by movement above 1.3384 as within wave iii pink no second wave may move beyond the start of its first wave.