We continue to gather evidence that suggests that the countertrend advance has peaked and that the larger degree downtrend has resumed.
Synopsis: By pushing below 1.2812 and then 1.2662, Cable would be likely to locate support around 1.2620.
Main Hourly Count
– Invalidation Point: 1.2937
– Confirmation Point: 1.2799 — 1.2662
– Downwards Target: 1.2757 — 1.2658
– Wave number: v orange
– Wave structure: Motive
– Wave pattern: Impulse/Ending diagonal
Elliott Wave chart analysis for the GBPUSD for 23rd August, 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.
This count will be confirmed by movement below 1.2662.
A preliminary target exists at 1.2307 where wave iii pink would have traveled the same distance as wave i pink.
This count would be invalidated by movement above 1.3473 as within wave iii pink 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 through iv orange are likely complete and that wave v orange is in its very early stages.
Wave i orange unfolded as an impulse labeled waves 1 through 5 purple.
Wave ii orange unfolded as a zigzag labeled waves A, B and C purple.
Wave iii orange unfolded as an impulse labeled waves 1 through 5 purple.
Within wave v orange, it is likely that waves 1 and 2 purple are complete and that wave 3 purple is in its very early stages.
This count would be initially confirmed by movement below 1.2799 and the final confirmation point is at 1.2662.
At 1.2747 wave 3 purple would have traveled the same distance as wave 1 purple and at 1.2658 wave 3 purple would have traveled 1.618 times the length of wave 1 purple.
This count would be invalidated by movement above 1.2937 as wave 2 purple may not retrace more than 100 % of wave 1 purple.