GBPUSD – Time For Uptrend Continuation!!

This week the pound unfolded exactly as expected exceeding the main count`s target by 6 pips before reversing directions and moving towards the downside.

We are updating the main count according to the latest price action and as well presenting an alternate count which expects the pound to continue moving towards the downside.

It should be noted that MACD readings on the 6-hours chart does not provide enough data -at the time being- to confirm or refute the main count`s view.

As always we will let price action decide for us which count is the highly probable count by waiting for either count`s confirmation point to be reached.

6-Hours Main Count

- Invalidation Point: 1.6553 -- 1.6787
- Confirmation Point: 1.6622
- Upwards Targets: 1.6691 -- 1.6728
- Wave number: c orange
- Wave structure: Motive
- Wave pattern: Impulse/Ending diagonal

6-Hours Alternate Count

- Invalidation Point: 1.6622
- Confirmation Point: 1.6553
- Downwards Targets: 1.6545
- Wave number: a orange
- Wave structure: Motive
- Wave pattern: Impulse

Main Wave Count

This count expects that wave (C) black is likely complete and that wave (D) black is starting to unfold towards the downside.

Within wave (D) black, wave a pink is unfolding towards the downside as an expanding leading diagonal with waves (i) through (iii) green complete and wave (iv) green is unfolding towards the upside.

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

Wave c orange unfolded as an ending diagonal labeled waves 1 through 5 purple.

Within wave (iv) green waves a and b orange are expected complete and this count expects that wave c orange is unfolding towards the upside.

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

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

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

Following the completion of wave a orange, wave b orange unfolded towards the downside as a zigzag labeled waves A, B and C purple with wave C purple unfolding as an impulse labeled waves (1) through (5) aqua.

As far as Japanese candlesticks study goes, no clear pattern appears at this point.

As far as MACD study goes, the lack of a MACD divergence on the 6 hours chart does not confirm or refute the main count`s view.

This count would be confirmed by movement above 1.6622.

At 1.6691 wave c orange will reach 0.618 the length of wave a orange and at 1.6728 wave c orange will reach 0.786 the length of wave a orange.

This count would be invalidated by movement above 1.6787 as within a leading diagonal wave (iv) green may not exceed the end of wave (ii) green, as well this count would be invalidated by movement below 1.6553 as within wave c orange no second wave may retrace more than 100 % the length of the first wave.

Alternate Wave Count

This count expects that wave (iv) green is complete and that wave (v) green is underway.

Wave (iv) 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.

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

Within wave (v) green wave a orange is unfolding as an impulse labeled waves 1 through 5 purple with waves 1 through 4 purple expected complete and wave 5 purple is unfolding towards the downside.

This count would be confirmed by movement below 1.6553.

At 1.6545 wave 5 purple will reach equality with wave 1 purple.

This count would be invalidated by movement above 1.6622 as wave 4 purple may not enter the price territory of wave 1 purple and it should be noted that the invalidation point will be moved to the end of wave 4 purple once we have confirmation on the hourly chart that wave 5 purple is unfolding towards the downside.