GBPUSD – Has Cable Formed The Low Of The Year Yet ?!

Last week, Cable unfolded as expected and first target was reached to the pip, locking in 134 pips.

We are modifying the main count which now expects a complete five wave structure and therefore an upwards correction is expected to be underway. As well, we are adding an alternate count which expects that Cable has more to offer towards the downside.

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

6-Hours Main Count

- Invalidation Point: 1.5874 -- 1.7193
- Confirmation Point: 1.6227 -- 1.6526
- Upwards Targets: 1.6378 -- 1.6688
- Wave number: (2) Black
- Wave structure: Corrective
- Wave pattern: Zigzag

6-Hours Alternate Count

- Invalidation Point: 1.6526
- Confirmation Point: 1.5874
- Downwards Targets: 1.6706 -- 1.5567
- Wave number: iii pink
- Wave structure: Motive
- Wave pattern: Impulse

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 unfolding towards the downside.

Within wave C maroon wave (1) black is expected complete as a leading diagonal labeled waves 1 through 5 blue and that wave (2) black is starting to unfold towards the upside.

Wave 1 blue unfolded as a zigzag labeled waves a, b and c pink.

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

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

Wave 2 blue unfolded as a double zigzag labeled waves w, x and z pink.

Wave 3 blue unfolded as a zigzag labeled waves a, b and c pink.

Wave 4 blue unfolded as a zigzag labeled waves a, b and c pink.

Wave 5 blue unfolded as a double zigzag labeled waves w, x and y pink.

This count would be initially confirmed by movement above 1.6227 and the final confirmation point is at 1.6526.

At 1.6378 wave (2) black will reach 0.382 the length of wave (1) black and at 1.6688 wave (2) black will reach 0.618 the length of wave (1) black.

This count would be invalidated by movement below 1.5874 as within wave A blue within wave (2) black no second wave may retrace more than 100 % the length of the first wave and as well this count would be invalidated by movement above 1.7193 as wave (2) black may not retrace more than 100 % the length of wave (1) black.

Alternate Wave Count

This count expects that wave (1) black has more to offer towards the downside with waves 1 and 2 blue complete and wave 3 blue is underway.

Within wave 3 blue waves i and ii pink are complete and wave iii pink is unfold towards the downside.

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

Wave ii pink unfolded as a double zigzag labeled waves (w), (x) and (y) green with each wave within that double zigzag unfolding as a zigzag labeled waves a, b and c orange.

Within wave iii pink wave (i) green is expected complete as an impulse labeled waves i through v orange and wave (ii) green is expected underway.

This count would be confirmed by movement below 1.5874.

At 1.5706 wave iii pink will reach 1.382 the length of wave i pink and at 1.5567 wave iii pink will reach 1.618 the length of wave i pink.

This count would be invalidated by movement above 1.6526 as wave (ii) green may not retrace more than 100 % the length of wave (i) green and it should be noted that the invalidation point will be moved to the end of wave (ii) green.