GBPUSD – Preparing For A Decline or Another Corrective Thrust!!

Last week, Cable unfolded as expected and target was reached and exceeded. That indeed was a beautiful setup to watch unfolding.

This week Cable does not provide us with the same opportunity we had last week as this week`s opportunity is not as clear, however -as traders- we do not expect the market to be that clear all of the time. We gather clues and wait for the next ride.

We are updating the main count according to the latest price action and as well adding an alternate count which expects that Cable`s correction is incomplete.

As always we will wait for either count`s confirmation point to be reached to determine the highly probable count.

P.S.: I tried recording this week`s video analysis but as I am going through an acute case of Tonsillitis, my voice is barely audible and the audio quality was quite bad. Please accept my apologies for not publishing the video analysis this week.

6-Hours Main Count

- Invalidation Point: 1.6440
- Confirmation Point: 1.6052
- Downwards Target: 1.6032
- Wave number: v pink
- Wave structure: Motive
- Wave pattern: Impulse/Ending diagonal

6-Hours Alternate Count

- Invalidation Point: 1.6466 -- 1.6052
- Confirmation Point: 1.6279
- Downwards Target: 1.6307
- Wave number: (ii) green
- Wave structure: Corrective
- Wave pattern: Zigzag

Main Wave Count

This count expects that wave B maroon is complete as a zigzag labeled waves (A), (B) and (C) black and that wave C maroon is starting to unfold towards the downside.

Wave (C) black within wave B maroon unfolded as an impulse labeled waves 1 through 5 blue.

Within wave C maroon wave (1) black is expected to be underway with waves 1 and 2 blue complete and that wave 3 blue is underway.

Wave 1 blue unfolded as an impulse labeled waves i through v pink.

Wave ii pink unfolded as a double combination labeled waves (w), (x) and (y) green.

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

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

Wave 2 blue unfolded as a zigzag labeled waves a, b and c pink with wave b pink unfolding as a triangle labeled waves (a) through (e) green.

Within wave 3 blue waves i through iii pink are expected complete and as well it is expected that wave iv pink is likely complete and that wave v pink is starting to unfold towards the downside.

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

This count would be confirmed by movement below 1.6052.

At 1.6032 wave v pink will reach 0.618 the length of wave iii pink.

This count would be invalidated by movement above 1.6440 as wave iv pink may not enter the price territory of wave i pink and it should be noted that the invalidation point will be moved to the end of wave iv pink once we have confirmation on the hourly chart that wave v pink is underway.

Alternate Wave Count

This count expects that wave iii pink is extending towards the downside with wave (i) green complete as an impulse labeled waves i through v orange and that wave (ii) green is at its late stages.

Within wave (ii) green wave a orange is expected complete and wave b orange is unfolding towards the downside, following the completion of wave b orange, wave c orange is expected to unfold towards the upside to complete wave (ii) green.

This count would be confirmed by movement above 1.6279.

At 1.6307 wave (ii) green will reach 0.618 the length of wave (i) green and we should pay extra attention to sign of trend exhaustion near that target level as that target represents the end of a corrective phase and the start of a powerful impulsive decline and we would not want to be caught on the wrong side of the trade.

This count would be invalidated by movement above 1.6466 as wave (ii) green may not retrace more than 100 % the length of wave (i) green and as well this count would be invalidated by movement below 1.6052 as wave b orange may not retrace more than 100 % the length of wave a orange.