GBPUSD: What To Expect This Week!

In our previous analysis "GBPUSD: Short-term Elliott Wave Perspective", the alternate count expected downwards movement and Cable confirmed the alternate count and fell short of the specified target by 10 pips before reversing directions and moving upwards in a corrective manner.

This week`s main count expects Cable to unfold downwards sharply in an impulsive manner, while the alternate count expects Cable to continue moving upwards to complete a second wave.

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

Main Count

- Invalidation Point: 1.5658
- Confirmation Point: 1.5107
- Downwards Targets: 1.5062 -- 1.4995
- Wave number: (3) aqua
- Wave structure: Motive
- Wave pattern: Impulse

Alternate Count

- Invalidation Points: 1.5107 -- 1.5658
- Confirmation Point: 1.5245
- Upwards Targets: 1.5266 -- 1.5317
- Wave number: ii orange
- Wave structure: Corrective
- Wave pattern: Double Zigzag

Main Wave Count

This count expects that primary wave C maroon is unfolding downwards and within it intermediate waves (1) and (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 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 waves (i) and (ii) green complete and wave (iii) green is underway.

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

Wave i orange unfolded as an impulse labeled waves 1 through 5 purple.

Wave (ii) green unfolded as unfolding as a zigzag labeled waves a, b and c orange.

Within wave (iii) green it is likely that waves i and ii orange are complete and wave iii orange is at its early stages.

Wave i orange unfolded as an impulse labeled waves 1 through 5 purple.

Within wave iii orange it is likely that wave 1 purple is underway with waves (1) and (2) aqua complete and wave (3) aqua has started unfolding downwards.

This count would be confirmed by movement below 1.5107.

At 1.5062 wave (3) aqua would reach equality with wave (1) aqua and at 1.4995 wave (3) aqua would reach 1.618 of wave (1) aqua.

This count would be invalidated by movement above 1.5658 and it should be noted that the invalidation point will be moved to the end of wave ii orange at 1.5245 once we have confirmation on the hourly chart that wave iii orange is underway.

Alternate Wave Count

This count expects that wave i orange is complete as an impulse labeled waves 1 through 5 purple.

Wave 3 purple unfolded as an impulse labeled waves (1) through (5) aqua.

Wave 5 purple unfolded as an ending diagonal labeled waves (1) through (5) aqua.

This count expects that wave ii orange is unfolding as a double combination labeled waves W, X and Y purple with waves W and X purple complete and wave Y purple is unfolding towards the upside.

This count would be confirmed by movement above 1.5245.

At 1.5266 wave Y purple would reach equality with wave W purple and at 1.5317 wave ii orange would reach 0.382 of wave i orange.

This count would be invalidated by movement above 1.5658 as wave ii orange may not retrace more than 100 % of wave i orange and as well this count would be invalidated by movement below 1.5107 as wave X purple may not retrace more than 100 % of wave W purple and it should be noted that the invalidation point will be moved to the end of wave X purple once we have confirmation on the hourly chart that wave Y purple is unfolding upwards.

We may also wish to keep an eye on the daily update GBP USD Forecast.