GBPUSD: Is Cable`s Consolidation Mature Yet?!

In our previous analysis GBPUSD: Getting Ready For Action! the alternate count expected Cable to unfold towards the upside to complete a second wave correction and Cable unfolded as expected and target was reached and exceeded.

This week`s count expects Cable to resume its downtrend within a third wave impulse.

As always we will wait for confirmation point to be reached to establish confidence in the main count`s view.

Main Count

- Invalidation Point: 1.5336
- Confirmation Point: 1.5027
- Upwards Target: 1.4992 -- 1.4920
- Wave number: 3 red
- Wave structure: Motive
- Wave pattern: Impulse

Elliott Wave chart analysis for the GBPUSD for 24th November, 2015. Please click on the charts below to enlarge.

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.

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

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.

Wave ii orange unfolded as a zigzag labeled waves A, B and C purple.

Within wave iii orange it is likely that waves 1 and 2 purple are complete and that wave 3 purple is underway.

Wave 1 purple unfolded as a leading diagonal labeled waves (1) through (5) aqua.

Within wave 3 purple it is expected that waves (1) and (2) aqua are complete and wave (3) aqua is subdividing downwards.

Within wave (3) aqua waves 1 and 2 red are complete and wave 3 red is underway.

This count would be confirmed by movement below 1.5027.

At 1.4992 wave iii pink would reach 1.382 of wave i pink which is the next logical target and at 1.4920 wave 3 red would reach equality with wave 1 red.

This count would be invalidated by movement above 1.5336 as within wave 3 red no second wave may retrace more than 100 % of its first wave.

Food For Thought: A deeper look on the hourly chart suggests that a second upwards correction within wave 3 red might be underway before Cable resumes its downtrend. We examined that possibility in detail in today`s daily analysis.

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