Tomorrow's Prices Today
As expected the pound moved toward the downside and has just reached our first target at 1.2895.
This decline shows no sign of slowing down at this point, despite being in a good position for at least a temporary correction. This is why I’m citing more ambitious targets for the current decline, but I’m also including resistance levels in case price reverses from the current levels.
As expected the euro moved toward the downside, reached our target at 1.1358, and then exceeded it by 25 pips so far.
While Cable hasn’t broken below the invalidation point of the hourly count, its recent decline has already caused overlap between its orange waves ii and iv. This isn’t always guaranteed to invalidate a count, but it’s certainly enough to begin the search for a (possibly) more fitting one.
This updated count follows closely on the heels of the previous one, with some modifications to the hourly chart and its pivots.
Contrary to my latest expectation, the euro continued moving toward the downside, slowly but steadily.
The new wave relationships have reintroduced the possibility (and increased the probability) of this move’s being an impulse, but this makes it very difficult to label the details of this movement in a satisfying manner.
Therefore, the hourly chart highlights only the important price points for the time being, until more data is available to help with the wave counting process.
GBPUSD continues to drift lower, confirming the alternate hourly count and the cited target was reached and exceeded.
The nature of the decline opens the door to consider the idea that wave B blue may have run its course. We will discuss that bearish scenario in our “Alternate Daily” section.
Please Note: I am out of the office from Wednesday 6/2 to Friday 8/2. Many thanks for Tamer for filling in. I will be back with you next week. Have a wonderful weekend.
[View Wave Counts & Charts…]
The euro traded a range of about 35 pips throughout the entire day, managing to exceeded the previous daily low merely by 10 pips.
The slow and overlapping movement suggests a more likely scenario, particularly on the hourly chart, which is that the euro is now forming a leading diagonal toward the downside. This count is a work-in-progress, but it looks much more plausible than the alternatives.
Cable remains locked close to its low adding little to the overall outlook.
We are adding an alternate hourly count that expects that the countertrend decline has yet to bottom.
[View Wave Counts & Charts…]
The euro just completed a fairly positive week, but price is still trapped within the boundaries of the corrective range that’s been going on for several months now.
Over the weekend, I tried many combinations and permutations to see if there was a better wave count to fit all this price action, but it appears that our current count is still the most fitting.
The daily chart covers the slightly-longer-term view of a very bearish downtrend, whereas the hourly chart focuses on the immediate present, which favors the possibility of a moderate rally first.
Cable continued to drift lower, scoring a slightly lower low, implying that the countertrend decline had yet to locate a bottom.
GBPUSD traded on down, confirming the alternate hourly count and both targets were reached and exceeded.
