GBPUSD 21st February, 2018

Even though the downward drift is in line with the main hourly count, we want to see a sharp decline to gain confidence in that outlook.

As always we should wait for either count’s confirmation point to be reached to determine the highly probable count.

Synopsis: By moving below 1.3800 and then 1.3613 Cable would then be expected to locate support around 1.3481 and if exceeded then to 1.3122. By movement above 1.4279 Cable would be expected to continue higher toward 1.4313 and if exceeded then to 1.4460.

Main Hourly Count

– Invalidation Point: 1.4346
– Confirmation Point: 1.3800
– Downwards Targets: 1.3481 — 1.3122
– Wave number: iii pink
– Wave structure: Motive
– Wave pattern: Impulse

Alternate Hourly Count

– Invalidation Point: 1.4567 — 1.3613
– Confirmation Point: 1.4279
– Upwards Targets: 1.4313 — 1.4460
– Wave number: (v) green
– Wave structure: Motive
– Wave pattern: Impulse

Elliott Wave chart analysis for the GBPUSD for 21st February, 2018. 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 (3) black are complete and wave (4) black is likely complete and that wave (5) black is in its early stages.

Wave (4) black unfolded as a triple zigzag labeled waves W, X, Y, X and Z blu.

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

This count will be initially confirmed by movement below 1.3301.

We will be able to calculate targets for wave (5) black once it starts subdividing lower but it should generally tag the low of wave (3) black around the 1.1970 level.

This count would be invalidated by movement above 1.4446 as within wave (5) black no second wave may retrace more than 100 % of its first wave.

Main Hourly Wave Count

The main count suggests that wave (4) black is complete and that wave (5) black is underway.

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

Within wave (5) black, it is likely that wave 1 blue is subdividing lower with wave i pink complete and wave ii pink has likely located a top.

Wave i pink unfolded as a leading diagonal labeled waves (i) through (v) green.

This count will be initially confirmed by movement below 1.3800 and the mid-term confirmation point is at 1.3613.

At 1.3481 wave iii pink would have traveled the same distance as wave i pink and at 1.3122 wave iii pink would have traveled 1.618 times the length of wave i pink.

This count would be invalidated by movement above 1.4346 as wave ii pink may not retrace more than 100 % of wave i pink.

Alternate Hourly Wave Count

This count suggests that Cable has higher highs in store to complete wave c pink and therefore, wave (4) black.

Within wave c pink, waves (i) through (iv) green are complete and wave (v) green is in its very early stages.

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

This count will be confirmed by movement above 1.4279 as that would leave the decline off the 1.4346 high with a corrective look.

We have a conservative target at 1.4313 where wave (v) green would have traveled 0.618 times the length of wave (iii) green and at 1.4460 wave (v) green would have traveled 0.786 times the length of wave (iii) green.

This count would be invalidated by movement above 1.4567 as wave (4) black may not enter the price territory of wave (1) black. As well this count would be invalidated by movement below 1.3613 as wave (iv) green may not enter the price territory of wave (i) green.

Scroll to Top