GBPUSD – Is It Time For Cable`s Reversal

Last week Cable unfolded towards the downside as expected and both targets were reached and exceeded by 15 pips and in the process locking in 182 pips in profit.

We are updating the main count according to the latest price action which expects an impulsive decline within wave (3) black and as well adding an alternate count which expects that wave (1) black is complete as a leading diagonal and that wave (2) black is starting to unfold 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: 1.5790
- Confirmation Points: 1.5593
- Downwards Targets: 1.5606 -- 1.5525
- Wave number: v orange
- Wave structure: Motive
- Wave pattern: Impulse/Ending diagonal

6-Hours Alternate Count

- Invalidation Point: 1.5593 -- 1.7193
- Confirmation Points: 1.5946 -- 1.6183
- Upwards Targets: 1.6203 -- 1.6581
- Wave number: (2) black
- Wave structure: Corrective
- Wave pattern: Zigzag

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 likely complete and wave iii pink is unfolding towards the downside.

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

Within wave (iii) green waves i through iv orange are expected complete and wave v orange is underway.

This count would be confirmed by movement below 1.5593.

At 1.5606 wave v orange will reach 0.618 the length of wave i orange and at 1.5525 wave v orange will reach equality with wave i orange.

This count would be invalidated by movement above 1.5790 as wave iv orange may not enter the price territory of wave i orange and it should be noted that the invalidation point will be moved to the end of wave iv orange once we have confirmation on the 6-hours chart that wave v orange is unfolding towards the downside.

Alternate Wave Count

This count expects that wave (1) black is complete as a leading diagonal labeled waves 1 through 5 blue.

Wave 1 blue unfolded as a zigzag labeled waves a, b and c pink with wave c pink unfolding as an impulse labeled waves (i) through (v) green.

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

This count would be initially confirmed by movement above 1.5946 and the final confirmation point is at 1.6183.

At 1.6203 wave (2) black will reach 0.382 the length of wave (1) black and at 1.6581 wave (2) black will reach 0.618 the length of wave (1) black.

This count would be invalidated by movement below 1.5593 as within wave (2) black no B wave may retrace more than 100 % the length of an A wave. Also, 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.