We continue to look for evidence to support the main hourly count which expects further decline.
On the other hand, the alternate hourly count suggests that a bottom is in place and that a counter-trend advance has started.
As always, we will wait for either count confirmation point to be reached to determine the highly probable count.
Synopsis: By moving below 1.3390 Cable is likely to locate support around 1.3363 and if exceeded then to 1.3316. On the upside, by moving above 1.3570, Cable would be likely to locate resistance around 1.3884 and if exceeded then to 1.4000.
Main Hourly Count
– Invalidation Point: 1.3528
– Confirmation Point: 1.3390
– Downwards Target: 1.3363 — 1..3316
– Wave number: (v) green
– Wave structure: Motive
– Wave pattern: Impulse or Ending Diagonal
Alternate Hourly Count
– Invalidation Point: 1.3390 — 1.4377
– Confirmation Point: 1.3570
– Upwards Target: 1.3884 — 1.4000
– Wave number: ii pink
– Wave structure: Corrective
– Wave pattern: Zigzag
Elliott Wave chart analysis for the GBPUSD for 21st May, 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 likely as an ending diagonal.
Within wave C maroon intermediate waves (1) and (2) black are complete and intermediate wave (3) black is likely in its early stages.
Wave (2) black unfolded as a double zigzag labeled waves W, X and Y blue.
Wave W blue unfolded as a zigzag labeled waves a, b and c pink with wave c pink unfolding as an impulse labeled waves (i) through (v) green.
Wave Y blue unfolded as a zigzag labeled waves a, b and c pink with wave a pink unfolding as an impulse labeled waves (i) through (v) green.
It is worth noting that wave (v) green was a truncated fifth wave.
We will be able to calculate near-term targets once wave (3) black starts to subdivide lower.
This count would be invalidated by movement above 1.4377 as within wave A of (3) black no second wave may retrace more than 100 % of its first wave.
Main Hourly Wave Count
The main count suggests that wave i pink is in its late stages as an impulse labeled waves (i) through (v) green.
Wave (i) green unfolded as an impulse labeled waves i through v orange.
Wave (iii) green unfolded as an impulse labeled waves i through v orange.
Wave (iv) green unfolded as an expanded flat correction labeled waves a, b and c orange.
Within wave (v) green, waves i through iv orange are complete and wave v orange is in its very late stages.
As far as MACD study goes, MACD is showing a series of bullish divergences, suggesting that downward movement should prove limited and that it should give way to a countertrend bounce.
This count will be confirmed by movement below 1.3390.
At 1.3363 wave (v) green would have traveled 0.786 times the length of wave (i) green and at 1.3316 wave (v) green would reach equality with wave (i) green.
This count would be invalidated by movement above 1.3528 as a movement above that level would suggest that wave (v) green is behind us and that wave ii pink has started.
Alternate Hourly Wave Count
The only difference between both main and alternate counts is within the subdivisions of waves (iv) and (v) green.
This count suggests that wave (iv) green unfolded as a triangle labeled waves a through e ornage and that wave (v) green has located a bottom.
If correct, then wave ii pink should be in its early stages.
This count would be confirmed by movement above 1.3570.
At 1.3884 wave ii pink would have traveled 50 % times the length of wave i pink and at 1.4000 wave ii pink would have traveled 0.618 times the length of wave i pink.
This count would be invalidated by movement below 1.3390 as within a zigzag wave ii pink no B wave may retrace more than 100 % of its A wave. As well, this count would be invalidated by movement above 1.4377 as wave ii pink may not exceed the start of wave i pink.