The most recent advance from Tuesday’s lows opens the door for the idea that a bottom is in place.
We still want to see further evidence to suggest the bullish case.
Keep in mind that today’s alternate scenario does not provide the best fit, but we should keep our eyes open for the bearish possibility.
Synopsis: Cable is expected to locate support around 1.2645 and if exceeded then to 1.2592 before resuming its advance.
Main Hourly Count
– Invalidation Point: 1.2506 — 1.2728
– Confirmation Point: —
– Downwards Targets: 1.2645 — 1.2592
– Wave number: ii orange
– Wave structure: Corrective
– Wave pattern: Zigzag
Elliott Wave chart analysis for the GBPUSD for 19th June, 2019. 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, waves (1) and (2) black are complete and wave (3) black is underway.
Within wave (3) black, wave A blue is complete and wave B blue is in force as a zigzag correction labeled waves a, b and c pink with waves a and b pink complete and wave c pink is in its early stages.
Wave a pink unfolded as a leading diagonal labeled waves (i) through (v) green.
Wave b pink unfolded as a zigzag labeled waves (a), (b) and (c) green.
This count would be initially confirmed by movement above 1.3178 and the final confirmation point is at 1.3383.
At 1.3485 wave c pink would have traveled the same distance as wave a pink and at 1.3620 wave B blue would have traveled 0.618 times the length of wave A blue.
This count would be invalidated by movement below 1.2400 as wave b pink may not retrace more than 100 % of wave a pink.
Main Hourly Wave Count
This count suggests that wave b pink is complete and that wave c pink started to unfold upwards with wave (i) green underway.
Wave v orange of wave b pink unfolded as an impulse labeled waves 1 through 5 purple.
Within wave c pink, (i) green is underway with wave i orange complete and wave ii orange has started.
At 1.2645 wave ii orange would have traveled 0.382 times the length of wave i orange. And at 1.2592 wave ii orange would have traveled 0.618 times the length of wave i orange.
This count would be invalidated by movement below 1.2605 as wave ii orange may not retrace more than 100 % times the length of wave i orange. As well, this count would be invalidated by movement above 1.2728 as within wave ii orange no B wave may retrace more than 100 % times the length of its A wave.
Alternate Hourly Wave Count
The only difference between both counts is that the alternate count suggests that wave b pink remains in force.
Wave v orange is expected to be unfolding as an ending diagonal labeled waves 1 through 5 purple with waves 1 and 2 purple complete and wave 3 purple is underway.
This count would be confirmed by movement above 1.2605.
At this stage, we are not able to identify a target for wave 3 purple, but if this count is on the mark, downside movement is limited to 1.2469 as a pip below that level wave 3 purple would be longer than wave 1 purple, negating the contracting ending diagonal scenario.