This week the pound unfolded as expected, the first specified target was reached and the pound fell short of the second specified target by 1 pip.

We are updating the main count according to the latest price action and we are adding an alternative count which expects that the pound has more to offer towards the upside.

8-Hours Main Count

- Invalidation Point: 1.5739

- Confirmation Point: 1.5263 — 1.4813

- Downwards Targets : 1.4497 — 1.3917

- Wave number: 3 blue

- Wave structure: Motive

- Wave pattern: Impulse

8-Hours Alternative Count

- Invalidation Point: 1.5143 — 1.5739

- Confirmation Point: 1.5435

- Upwards Targets : 1.5472

- Wave number: 2 blue

- Wave structure: Corrective

- Wave pattern: Zigzag

Main Wave Count

GBPUSD

This count expects that wave 4 maroon is complete and that wave 5 maroon is unfolding towards the downside.

Within wave 5 maroon waves (1) and (2) black are complete and wave (3) black is underway.

Within wave (2) black wave A blue unfolded as an impulse labeled waves i through v pink.

Wave B blue unfolded as a zigzag towards the downside labeled waves a, b and c pink.

Wave c pink within wave B blue unfolded as an impulse labeled waves (i) through (v) green.

Wave C blue unfolded as an ending diagonal towards the upside labeled waves i through v pink with wave i pink unfolding as a zigzag labeled waves (a), (b) and (c) green and that wave (3) black is unfolding towards the downside.

Within wave (3) black wave 1 blue unfolded as an impulse labeled waves i through v pink with wave iii pink unfolding as an impulse labeled waves (i) through (v) green.

This count expects that wave 2 blue is highly likely complete as a zigzag labeled waves a, b and c pink and that wave 3 blue is at its early stages.

This count would be initially confirmed by movement below 1.5263 and the final confirmation point lies at 1.4813.

At 1.4497 wave 3 blue will reach equality with wave 1 blue and at 1.3917 wave 3 blue will reach 1.618 the length of wave 1 blue.

This count would be invalidated by movement above 1.5739 as wave 2 blue may not retrace more than 100 % the length of wave 1 blue and it should be noted that the invalidation point will be moved to the end of wave 2 blue once we have confirmation on the daily chart that wave 3 blue is underway.

Alternative Hourly Wave Count

GBPUSD

The difference between both main and alternative counts is within the subdivisions of wave 2 blue as the alternative count expects that wave 2 blue is incomplete.

Within wave 2 blue wave c pink is unfolding towards the upside as an impulse labeled waves (i) through (v) green with waves (i) through (iv) green complete and wave (v) green is underway.

Wave (iii) green unfolded as an impulse labeled waves i through v orange.

This count would be confirmed by movement above 1.5435.

At 1.5472 wave (v) green will reach equality with wave (i) green.

This count would be invalidated by movement above 1.5739 as wave 2 blue may not retrace more than 100 % the length of wave 1 blue and as well this count would be invalidated by movement below 1.5143 as wave (iv) green may not enter the price territory of wave (i) green and it should be noted that the invalidation point will be moved to the end of wave (iv) green once we have confirmation on the hourly chart that wave (v) green is underway.