GBPUSD: Is Cable`s Downtrend Here To Stay?
|Following the publish of our previous analysis Cable unfolded inline with the alternate count`s view and at this stage, evidence suggests that wave (4) black might be complete.
In today`s analysis, we will be focusing on the 6-hours chart. Main count expects Cable to unfold downwards within a fifth wave and on the other hand, the alternate count expects Cable to continue unfolding upwards to complete a fourth wave correction.
As always, we will wait for either count`s confirmation point to be reached to determine the highly probable count.
Main Count
– Invalidation Point: 1.2726
– Confirmation Point: 1.2376
– Downwards Targets: 1.2349
– Wave number: (iii) green
– Wave structure: Motive
– Wave pattern: Impulse
Alternate Count
– Invalidation Point: 1.2302 — 1.4566
– Confirmation Point: 1.2776
– Upwards Targets: 1.2852 — 1.3001
– Wave number: c pink
– Wave structure: Motive
– Wave pattern: ُEnding diagonal
Main Wave Count
This count expects that within wave C maroon waves (1) through (4) black are complete and that intermediate wave (5) black is at its very early stages.
Wave (4) black is likely complete as a triple zigzag correction labeled waves W, X, X, Y and Z blue.
Wave Y blue unfolded as a flat correction labeled waves a, b and c pink.
Wave a pink unfolded as a three wave structure labeled waves (a), (b) and (c) green.
Wave b pink unfolded as a three wave structure labeled waves (a), (b) and (c) green.
Wave c pink unfolded as an impulse labeled waves (i) through (v) green.
The second wave X blue unfolded as a zigzag labeled waves a, b and c pink.
Wave Z blue unfolded as zigzag labeled waves a, b and c pink.
Wave b pink unfolded as a triangle labeled waves (a) through (e) green.
Wave c pink unfolded as an ending diagonal labeled waves (i) through (v) green.
This count expects that within wave (5) black waves i and ii pink are complete and wave iii pink is unfolding downwards.
Wave ii pink unfolded as an expanded flat correction labeled waves (a), (b) and (c) green with wave (c) green unfolding as an impulse labeled waves i through v orange.
Within wave iii pink it is likely that waves (i) and (ii) green are complete and that wave (iii) green is underway.
The lower line of the blue channel connecting the ends of waves W, X, Y, X and Z blue provides us with a trend line. Typically, Cable would be expected to bounce off that line before a clear break towards the downside.
This count would be confirmed by movement below 1.2376.
At 1.2349 wave (iii) green would reach 4.236 of wave (i) green.
This count would be invalidated by movement above 1.2726 as within wave (iii) green no second wave may retrace more than 100 % of its first wave.
Alternate Wave Count
This count expects that wave (4) black is incomplete and that wave (4) black has more to offer towards the upside.
Wave (4) black is seen unfolding as a zigzag correction labeled waves A, B and C blue with waves A and B blue complete and wave C blue is underway.
Wave A blue unfolded as a leading diagonal labeled waves i through v pink.
Wave B blue unfolded as a zigzag labeled waves a, b and c pink.
Wave C blue is expected to be unfolding upwards as an ending diagonal labeled waves i through v pink with waves i and ii pink complete and wave iii pink is at its very early stages towards the upside.
Wave a pink unfolded as a zigzag labeled waves (a), (b) and (c) green.
This count would be confirmed by movement above 1.2776.
At 1.2852 wave C blue would reach 0.786 of wave A blue and at 1.3001 wave C blue would reach equality with wave A blue.
This count would be invalidated by movement below 1.2302 as wave ii pink may not retrace more than 100 % of wave i pink.
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