The lack of upside follow-through along with the corrective nature of today’s action, leave the bullish count on thin ice and favors the alternate scenario. We would still want to see a decline below the main count’s invalidation point to imply that the bearish view is in action.
Synopsis: By pushing above 1.3175, Cable would be likely to locate resistance around 1.3333.
Main Hourly Count
– Invalidation Point: 1.2696
– Confirmation Point: 1.3073 — 1.3175
– Upwards Target: 1.3390 — 1.3509
– Wave number: (iii) green
– Wave structure: Motive
– Wave pattern: Impulse
Elliott Wave chart analysis for the GBPUSD for 27th November, 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 is likely in force towards the upside.
Within wave B blue, waves a and b pink are complete and wave c pink has started.
This count will be confirmed by movement above 1.3258.
At 1.3333 wave c pink would have traveled the same distance as wave a pink and at 1.3520 wave B blue would reach 50% times the length of wave A blue.
Ultimately, 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 and as well this count would be invalidated by movement below 1.2695 as within wave c pink no second wave may retrace more than 100 % of its first wave.
Main Hourly Wave Count
This count expects that wave B blue is unfolding as a flat correction labeled waves a, b and c pink.
Waves a pink unfolded as a zigzag labeled waves (a), (b) and (c) green with wave (c) green unfolding as an impulse labeled waves i through v orange.
Within wave c pink, waves (i) and (ii) green are complete and wave (iii) green is underway.
Wave (ii) green unfolded as a zigzag labeled waves a, b and c orange.
This count will be initially confirmed by movement above 1.3073 and the final confirmation point is at 1.3175.
At 1.3390 wave (iii) green would have traveled 1.382 times the length of wave (i) green and at 1.3508 wave (iii) green would have traveled 1.618 times the length of wave (i) green.
This count would be invalidated by movement below 1.2696 as wave (ii) green may not retrace more than 100 % of wave (i) green. We will move the invalidation point to the end of wave (ii) green once we have confirmation that wave (iii) green has started.
Alternate Daily Wave Count
This count suggests that waves A and B blue are complete and that wave C blue is in its early stages.
Wave A blue unfolded as a leading diagonal labeled waves i through v pink.
Wave B blue unfolded as a triangle labeled waves a through e pink.
This count would be confirmed by movement below 1.2696.
At 1.1850 wave C blue would have traveled the same distance as wave A blue.