In our previous analysis “GBPUSD: The New Kid in Uptrend Town!”. Cable was expected to continue moving upwards to complete a second wave before reversing directions in an impulsive manner within a third wave.
Cable unfolded exactly as expected and targets were reached and exceeded by 22 pips before reversing directions sharply towards the downside.
We are updating the main count`s according to the latest price action with short term targets, invalidation and confirmation points.
The alternate count expects that Cable has more to offer towards the downside to complete a fifth wave before entering a short consolidation phase.
As always we will wait for either count`s confirmation point to be reached to determine the highly probable count.
Main Count
– Invalidation Points: 1.5820 — 1.5370
– Confirmation Point: 1.5445
– Upwards Targets: 1.5455 — 1.5476 — 1.5528
– Wave number: (ii) green
– Wave structure: Corrective
– Wave pattern: Expanding Flat
Alternate Count
– Invalidation Point: 1.5510
– Confirmation Point: 1.5335
– Downwards Target: 1.5321 — 1.5290
– Wave number: v orange – Wave structure: Motive
– Wave pattern: Ending diagonal
Main Wave Count
This count expects that wave C blue and therefore intermediate wave (2) black might be complete and that intermediate wave (3) black has started unfolding towards the downside.
Within intermediate wave (3) black, it is expected that waves i and ii pink are complete and wave iii pink is underway.
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.
Wave (w) green unfolded as a zigzag labeled waves a, b and c orange.
Wave a orange unfolded as an impulse labeled waves 1 through 5 purple.
Wave b orange unfolded as a zigzag labeled waves A, B and C purple.
Wave (x) green unfolded as a zigzag labeled waves a, b and c orange.
Wave a orange unfolded as a leading diagonal labeled waves 1 through 5 purple.
Wave (y) green unfolded as a zigzag labeled waves a, b and c orange.
Wave c orange unfolded as an impulse labeled waves 1 through 5 purple with wave 1 purple unfolding as a leading diagonal labeled waves (1) through (5) aqua.
This count expects that wave iii pink is at its early stages with wave (i) green complete as an impulse labeled waves i through v orange and wave (ii) green is unfolding as an expanded flat correction towards the upside.
Within wave (ii) green, waves a and b orange are complete and wave c orange is underway.
This count would be confirmed by movement above 1.5445.
We have a target zone that starts at 1.5455 as at that level wave c orange will reach 1.618 of wave a orange and that target zone ends at 1.5476 as at that level wave (ii) green will reach 0.236 of wave (i) green. Finally if exceeded then the next logical target is at 1.5528 as at that level wave c orange will reach 2.618 of wave a orange.
This count would be invalidated by movement above 1.5820 as wave (ii) green may not retrace more than 100 % of wave (i) green. As well, this count would be invalidated by movement below 1.5335 as within wave c orange no second wave may retrace more than 100 % of its first wave.
Alternate Wave Count
The only difference between both main and alternate counts is within the subdivisions of wave v orange.
This count expects that wave v orange is incomplete and that it is unfolding downwards as an ending diagonal labeled waves 1 through 5 purple with waves 1 and 2 purple complete and wave 3 purple is underway.
This count would be confirmed by movement below 1.5335.
Since wave v orange exceeded equality with wave i orange by 1 pip, the next logical target is at at 1.5321 as at that level wave v orange would reach 1.382 of wave i orange and the second target is at 1.5290 as at that level wave v orange would reach 1.618 of wave i orange.
This count would be invalidated by movement above 1.5510 as wave 2 purple may not retrace more than 100 % of wave 1 purple.
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
AUD/USD holds above 0.6500 in thin trading
The Australian Dollar managed to recover ground against its American rival after AUD/USD fell to 0.6484. The upbeat tone of Wall Street underpinned the Aussie despite broad US Dollar strength and tepid Australian data.
EUR/USD comfortable below 1.0800 lower lows at sight
The EUR/USD pair lost ground on Thursday and settled near a fresh March low of 1.0774. Strong US data and hawkish Fed speakers comments lead the way ahead of the release of the US PCE Price Index on Friday.
Gold pulls away from daily highs, holds above $2,200
Gold retreats from daily highs but holds comfortably above $2,200 in the American session on Thursday. The benchmark 10-year US Treasury bond yield stays near 4.2% after upbeat US data and makes it difficult for XAU/USD to gather further bullish momentum.
Google starts indexing Bitcoin addresses
Bitcoin address data is live on Google search results after users realized on Thursday that the tech giant started indexing Bitcoin blockchain data. However, mixed reactions have followed the tech giant's reversed stance on the cryptocurrency.
A Hollywood ending for fourth quarter GDP
The latest revisions put Q4 GDP at 3.4%, the second fastest quarterly growth rate in two years. Much of the upside was attributable to stronger consumer spending, yet fresh profits data affirmed it was a good quarter for the bottom line as well with profits up by the most since the Q2-2022.