Cable dropped lower reaching and exceeding the first cited target. We would want to see further downward movement to gain confidence in the bearish call.
On the other hand, today’s alternate count suggests that downward movement should prove limited and that the larger degree uptrend should soon re-emerge.
As always, we should wait for either count’s confirmation point to be reached to determine the highly probable count.
Synopsis: By moving below 1.3770 and then 1.3613 Cable would then be expected to locate support around 1.3610 and if exceeded then to 1.3493. By movement above 1.4071 Cable would be expected to continue higher toward 1.4221.
Main Hourly Count
– Invalidation Point: 1.4071
– Confirmation Point: 1.3770
– Downwards Targets: 1.3603 — 1.3493
– Wave number: (iii) green
– Wave structure: Motive
– Wave pattern: Impulse
Alternate Hourly Count
– Invalidation Point: 1.4346 — 1.3770
– Confirmation Point: 1.4071
– Upwards Targets: 1.4221
– Wave number: ii pink
– Wave structure: Corrective
– Wave pattern: Flat
Elliott Wave chart analysis for the GBPUSD for 27th 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.
It is likely that wave iii pink has started to subdivide lower with waves (i) and (ii) green complete and wave (iii) green is underway.
This count will be initially confirmed by movement below 1.3770 and the mid-term confirmation point is at 1.3613.
At 1.3603 wave (iii) green would have traveled 1.618 times the length of wave (i) green and at 1.3493 wave (iii) would have traveled 2 times the length of wave (i) green.
This count would be invalidated by movement above 1.4071 as within wave (iii) green no second wave may retrace more than 100 % of its first wave.
Alternate Hourly Wave Count
This count suggests that wave ii pink is incomplete and it is unfolding as a flat correction labeled waves (a), (b) and (c) green with waves (a) and (b) green complete and wave (c) green is in its early stages.
This count will be confirmed by movement above 1.4071 as that would leave the whole decline from the end of wave (a) at 1.4145 high with a corrective look.
At 1.4221 wave ii pink would reach 0.786 the length of wave i pink.
This count would be invalidated by movement above 1.4346 as wave ii pink may not exceed more than 100 % of wave i pink. As well this count would be invalidated by movement below 1.3770 as no second wave within wave (c) green may retrace more than 100 % of its first wave.