Cable traded on down, supporting the alternate interpretation that the countertrend advance we have been tracking was a brief affair.
We have one count today which suggests that the downtrend is back on track.
As always, we will wait for either count’s confirmation point to be reached to determine the highly probable count.
Synopsis: By moving below 1.3049, Cable would be likely to locate support around 1.2947 and if exceeded then to 1.2720.
Main Hourly Count
– Invalidation Point: 1.3222
– Confirmation Point: 1.3049
– Downwards Target: 1.2947 — 1.2720
– Wave number: (iii) green
– Wave structure: Motive
– Wave pattern: Impulse
Elliott Wave chart analysis for the GBPUSD for 27th June, 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
This count expects that wave ii pink is complete and that wave iii pink has started.
Within wave iii pink, waves (i) and (ii) green are complete and wave (iii) green is underway.
Wave i orange within wave (iii) green is underway with waves 1 through 3 purple complete and it is likely that wave 4 purple has started.
Following the completion of wave 4 purple, Cable would be expected to drop lower to complete wave 5 purple and therefore, wave i orange.
This count would be confirmed by movement below 1.3049.
At 1.2947 wave (iii) green would have traveled the same distance as wave (i) green and at 1.2720 wave (iii) green would have reached 1.618 times the length of wave (i) green.
This count would be invalidated by movement above 1.3222 as wave 4 purple may not enter the price territory of wave 1 purple.