Cable unfolded as expected this week, reaching and exceeding both first and second targets. Following that downwards movement, Cable moved sharply towards the upside making a new high before reversing directions towards the downside ending the week losing all its gains.
We are updating the main count according to the latest price action and as well adding an alternate count which expects Cable to reverse directions and move towards the upside within wave v pink.
It should be noted that both main and alternate counts have almost equal probabilities.
As always we will wait for either counts confirmation point to be reached to determine the highly probable count.
6-Hours Main Count
- Invalidation Point: 1.7114
- Confirmation Point: 1.7036
- Downwards Targets: 1.7026 -- 1.6998
- Wave number: (c) green
- Wave structure: Motive
- Wave pattern: Impulse
6-Hours Alternate Count
- Invalidation Point: 1.7036
- Confirmation Point: 1.7193
- Downwards Targets: 1.7222 -- 1.7332
- Wave number: v pink
- Wave structure: Motive
- Wave pattern: Impulse/Ending diagonal
Main Wave Count
This count expects that wave B maroon is unfolding as a zigzag labeled waves (A), (B) and (C) black with waves (A) and (B) black complete and wave (C) black is unfolding towards the upside.
Wave (C) black is unfolding as an impulse labeled waves 1 through 5 blue with waves 1 through 4 blue complete and wave 5 blue is unfolding towards the upside.
Wave 5 blue is expected to be unfolding towards the upside as an impulse with waves i through iii pink complete and wave iv pink is underway.
Wave i pink unfolded as a leading diagonal labeled waves (i) through (v) green.
Wave ii pink unfolded as a zigzag labeled waves (a), (b) and (c) green.
Wave iii pink unfolded as an impulse labeled waves (i) through (v) green with wave (iii) green extending into an impulses labeled waves i through v orange.
Wave iv pink is expected to be unfolding as an expanded flat correction labeled waves (a), (b) and (c) green with waves (a) and (b) green expected complete and wave (c) green is expected to unfold towards the downside.
Within wave (c) green waves i through iv orange are expected complete and wave v orange is expected to unfold towards the downside.
This count would be confirmed by movement below 1.7036.
At 1.7026 wave (c) green will reach 1.382 the length of wave (a) green and at 1.6998 wave (c) green will reach 1.618 the length of wave (a) green.
This count would be invalidated by movement above 1.7114 as wave iv orange may not enter the price territory of wave i orange.
Alternate Wave Count
The difference between main and alternate counts is within the subdivisions of wave iv pink as the alternate count expects that wave iv pink is complete and that wave v pink is starting to unfold towards the upside.
Wave iv pink unfolded as a double combination labeled waves (w), (x) and (y) green.
Wave (w) green developed as a zigzag labeled waves a, b and c orange.
Wave (y) green developed as a zigzag labeled waves a, b and c orange.
This count would be confirmed by movement above 1.7193.
At 1.7222 wave v pink will reach 0.382 the length of wave iii pink and at 1.7332 wave B maroon will reach 50 % the length of wave A maroon.
This count would be invalidated by movement below 1.7036 as within wave v pink no second wave may retrace more than 100 % the length of the first wave.
Note: All information on this page is subject to change. The use of this website constitutes acceptance of our user agreement. Please read our privacy policy and legal disclaimer. Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. Risk Disclosure: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial advisor if you have any doubts.
Recommended Content
Editors’ Picks
EUR/USD drops below 1.0800 after German Retail Sales data
EUR/USD has come under fresh selling pressure and trades below 1.0800 after the data from Germany showed that Retail Sales declined by 1.9% MoM in February. Resurgent US Dollar demand is adding to the downside in the pair. US data are next in focus.
GBP/USD stays weak near 1.2600 amid market caution
GBP/USD remains defensive near 1.2600 in European trading on Thursday. The hawkish tone from Fed Governor Christopher Waller keeps the US Dollar afloat amid a cautious trading environment ahead of key US data releases and the Good Friday trading lull.
Gold price bulls keenly await US PCE Price Index on Friday before placing fresh bets
Gold price (XAU/USD) continues with its struggle to make it through the $2,200 mark on Thursday and oscillates in a narrow trading band through the early part of the European session.
XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC
XRP programmatic sales ruling by Judge Torres was completely rejected by another US Court that ruled in favor of the SEC in a lawsuit against Coinbase.
The other terminal rate: How far will policy rates be cut?
Recent communication by the Federal Reserve and the ECB has made it clear that the first cut in official interest rates is coming. Both central banks are saying the same but the ECB communication is more opaque than that of the Fed.