GBPUSD 20th December, 2018

The market continued to drift higher, implying that wave (ii) green has yet to run its course. Allow for higher — in a corrective manner — as long as the main hourly count’s invalidation point remains intact.

Synopsis: By pushing below 1.2477 would be likely to locate support around 1.2445 and if exceeded then to 1.2166. On the upside, by pushing through 1.2708, Cable would be likely to locate resistance around 1.2739.

Main Hourly Count

– Invalidation Point: 1.2812
– Confirmation Point: 1.2530 — 1.2477
– Downwards Target: 1.2373 — 1.2207
– Wave number: (iii) green
– Wave structure: Motive
– Wave pattern: Impulse

Alternate Hourly Count

– Invalidation Point: 1.2812 — 1.2477
– Confirmation Point: 1.2708
– Upwards Target: 1.2739
– Wave number: (ii) green
– Wave structure: Corrective
– Wave pattern: Double zigzag

Elliott Wave chart analysis for the GBPUSD for 20th December, 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 with waves A and B blue complete and wave C blue is at its early stages.

Wave A blue within wave (3) black has bottomed and wave B blue is likely in force towards the upside.

Wave B blue unfolded as a triangle labeled waves a through e pink.

This count will be confirmed by movement below 1.2611.

At 1.1850 wave C blue would have traveled the same distance as 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 1.3175 as within wave C blue no second wave may exceed more than 100 % of its first wave.

Main Hourly Wave Count

This count suggests that wave C blue has started unfolding lower with waves i and ii pink complete and that wave iii pink is underway.

Wave i pink unfolded as leading diagonal labeled waves (i) through (v) green with each wave unfolding as a zigzag labeled waves a, b and c orange.

Within wave iii pink, waves (i) and (ii) green are likely complete and that wave (iii) green is in its early stages.

This count would be confirmed by movement below 1.2477.

At 1.2373 wave (iii) green would have traveled the same distance as wave (i) green and then at 1.2207 where wave (iii) green would have reached 1.618 times the length of wave (i) green.

This count would be invalidated by movement above 1.2812 as wave (ii) green may not retrace more than 100 % of wave (i) green.

Alternate Hourly Wave Count

The lack of downside follow-through opens the door for this alternate scenario that wave (ii) green has yet to run its course and that it is unfolding as a double zigzag.

Within wave (ii) green, waves w and x orange are complete and wave y orange is in underway.

Wave x orange unfolded as a triangle labeled waves A through E purple.

This count would be confirmed by movement above 1.2708.

At 1.2739 wave (ii) green would have traveled 0.786 times the length of wave (i) green.

This count would be invalidated by movement above 1.2812 as wave (ii) green may not exceed the start of wave (i) green and as well, movement below 1.2477 as within a double zigzag wave x orange may not retrace more than 100 % of wave w orange.

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