GBPUSD – Cable`s Hibernation

Cable started the week by confirming the main count and -so far- Cable failed to reach the main count`s first target by 17 pips before reversing towards the upside and spending the rest of the week in a sideways manner.

At this stage multiple interpretations exist on the daily chart and we will filter these interpretations as price action unfolds, therefore we are adding conservative short term targets for both main and alternate counts.

We are modifying the main count`s according to the latest price action and as well adding an alternate count which expects that wave (2) black is unfolding towards the upside.

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: 1.5758

– Confirmation Points: 1.5652

– Downwards Targets: 1.5640 — 1.5577

– Wave number: 3 red

– Wave structure: Motive

– Wave pattern: Impulse

6-Hours Alternate Count

– Invalidation Point: 1.5541 — 1.7193

– Confirmation Points: 1.5758

– Upwards Targets: 1.5785

– Wave number: (iii) green

– Wave structure: Motive

– Wave pattern: Leading Diagonal

Main Wave Count

This count expects that wave B maroon is complete and that wave C maroon is unfolding towards the downside.

Within wave C maroon waves (1) and (2) black are likely complete and wave (3) black is unfolding towards the downside.

Wave (1) black unfolded as a leading diagonal labeled waves 1 through 5 blue.

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

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.

Wave (2) black unfolded as a double zigzag labeled waves W, X and Y blue.

Within wave (3) black waves i and ii pink are expected complete and wave iii pink is unfolding towards the downside.

Within wave iii pink waves (i) and (ii) green are complete and wave (iii) green is underway.

Wave (iii) green is starting to extend towards the downside with waves 1 and 2 purple complete and wave 3 purple is underway.

Wave 2 purple unfolded as a double zigzag labeled waves (W), (X) and (Y) aqua with wave (X) aqua unfolding as a triangle labeled waves A, B, C, D and E red.

Within wave 3 purple waves (1) and (2) aqua are expected complete and wave (3) aqua is unfolding towards the downside.

Within wave (3) aqua waves 1 and 2 red are expected complete and wave 3 red is starting to unfold towards the downside.

This count would be confirmed by movement below 1.5652.

At 1.5640 wave 3 red will reach equality with wave 1 red and at 1.5577 wave 3 red will reach 1.618 the length of wave 1 red.

This count would be invalidated by movement above 1.5758 as wave 3 red may not retrace more than 100 % the length of wave 1 red.

Alternate Wave Count

This count expects that wave (1) black is likely complete as an impulse labeled waves 1 through 5 blue and that wave (2) black is starting to unfold towards the upside.

Within wave (1) black wave 2 blue unfolded as a zigzag structure labeled waves a, b and c pink.

Wave 3 blue unfolded as an impulse labeled waves i through v pink.

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 4 blue unfolded as a triangle labeled waves a through e pink and this structure fulfills the rule of alternation between waves 2 and 4 blue.

Within wave (2) black wave A blue is starting to unfold towards the upside as an impulse labeled waves i through v pink with wave i pink underway.

Wave i pink is unfolding as a leading diagonal labeled waves (i) through (v) green with waves (i) and (ii) green complete and wave (iii) green is unfolding towards the upside.

This count would be confirmed by movement above 1.5758.

At 1.5785 wave (iii) green will reach 0.618 the length of wave (i) green which is the common Fibonacci level for third waves within a leading diagonal.

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 and as well this count would be invalidated by movement below 1.5541 as wave (ii) green may not retrace more than 100 % the length of wave (i) green. It is worth noting that the invalidation point will be moved to the end of wave (ii) green once we have confirmation on the hourly chart that wave (iii) green is underway.