GBPUSD extended its decline and the first target was reached and exceeded. If we are on the right track, lower lows should lie ahead and any bounce should set the stage for further decline.
We have one hourly count today and we will add alternate counts once price action suggests high probability counts.
Synopsis: By moving below 1.3010, Cable would be likely to locate support around 1.2994 and if exceeded then to 1.2765.
Main Hourly Count
– Invalidation Point: 1.3260
– Confirmation Point: 1.2957
– Downwards Target: 1.2874 — 1.2765
– Wave number: (iii) green
– Wave structure: Motive
– Wave pattern: Impulse
Elliott Wave chart analysis for the GBPUSD for 18th July, 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 in its early stages.
Wave (i) green unfolded as an impulse labeled waves i through v orange.
Wave (ii) green unfolded as an expanded flat correction labeled waves a, b and c orange.
Within wave (iii) green, waves i and ii orange are complete and wave iii orange should be underway.
It is worth noting that the subdivisions of wave i orange is not as clear as I’d have preferred.
This count would be confirmed by movement below 1.2957.
At 1.2874 wave iii orange would have traveled 1.618 times the length of wave i orange and at 1.2765 wave (iii) green would have reached 1.618 times the length of wave (i) green.
This count would be invalidated by movement above 1.3260 as within wave iii orange, no second wave may retrace more than 100 % of its first wave.