Cable continues to trade in a sideways manner and the operable count remains intact. I am adding an alternate count that suggests that short-term countertrend strength is in motion. It is worth noting that yesterday’s alternate count remains the most logical alternate scenario.
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 1.4146 Cable would be expected to continue higher toward 1.4221 and if exceeded then to 1.4236.
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: 1.4346 — 1.3856
– Confirmation Point: 1.4146
– Upwards Targets: 1.4221 — 1.4236
– Wave number: ii pink
– Wave structure: Corrective
– Wave pattern: Double Zigzag
Elliott Wave chart analysis for the GBPUSD for 23rd 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 wave ii pink is incomplete and it is unfolding as a double zigzag labeled waves (w), (x) and (y) green with waves (w) and (x) green complete and wave (y) green is underway.
Wave (w) green unfolded as a zigzag labeled waves a, b and c orange.
This count will be confirmed by movement above 1.4146.
At 1.4221 wave ii pink would reach 0.786 the length of wave i pink and at 1.4236 wave (y) green would reach equality with wave (w) green.
This count would be invalidated by movement above 1.43346 as wave ii pink may not exceed more than 100 % of wave i pink. As well this count would be invalidated by movement below 1.3856 as no B wave within wave (y) green may retrace more than 100 % of its A wave.