Cable continued to score lower lows, reaching and exceeding both cited levels. If the main hourly count is on track, downward movement should prove limited before giving way to a sideways corrective bounce.
Synopsis: By pushing below 1.2696, Cable would be likely to locate support around 1.2687.
Main Hourly Count
– Invalidation Point: 1.2854
– Confirmation Point: 1.2696
– Downwards Target: 1.2876
– Wave number: iii orange
– Wave structure: Impulse
– Wave pattern: Motive
Elliott Wave chart analysis for the GBPUSD for 30th October, 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.
Wave (3) black is unfolding as a zigzag labeled waves A, B and C blue.
Wave A blue within wave (3) black has bottomed and wave B blue has started unfolding towards the upside.
Wave (3) black should push below the 1.1790 swing low. We want to see more price action before calculating short-term targets.
This count would be invalidated by movement above 1.4377 as wave B blue may not exceed more than 100 % of wave A blue.
Main Hourly Wave Count
Cable pushed higher in line with the idea that a smaller degree countertrend bounce was underway, before reversing gears, leaving the bounce with a corrective look, in line with the bearish call.
This count expects that wave B blue unfolded as a zigzag labeled waves a, b and c pink with wave a pink unfolding as an expanded flat correction.
Within wave C blue, wave i pink is underway with waves (i) and (ii) green complete and wave (iii) green has started.
Wave (i) green unfolded as a leading diagonal labeled waves i through v orange.
This count suggests that wave (ii) green has peaked as a double zigzag labeled waves w, x and y orange.
Within wave (iii) green, waves i and ii orange are complete and wave iii orange is underway.
Within wave iii orange, waves 1 and 2 purple are complete and wave 3 purple is at its late stages.
Wave 3 purple is unfolding as an impulse with waves (1) through (4) aqua complete and wave (5) aqua is underway.
This count would be confirmed by movement below 1.2696.
At 1.2876 wave (5) aqua would have traveled the same distance as wave (1) aqua.
This count would be invalidated by movement above 1.2854 as within wave (5) purple no second wave may retrace more than 100% of its first wave.
Food For Thought:
The only difference between both main count and this count is within the subdivisions of wave B blue.
This count expects that wave B blue is unfolding as a flat correction labeled waves a, b and c pink.
Waves a pink is complete and no evidence to suggest that wave b pink has bottomed.
This count would be initially confirmed by movement above 1.3258 and the final confirmation is at 1.3299.
At 1.3318 wave B blue would have traveled 0.318 times the length of wave A blue and at 1.3519 wave B blue would have traveled 50 % times the length of wave A blue.
This count would be invalidated by movement below 1.2662 as within wave c pink no second wave may retrace more than 100% of its first wave.