GBPUSD – Is The Bearish Correction Mature Yet!!

Cable unfolded as expected this week, reaching and exceeding both first and second targets. Following that downwards movement, Cable moved sharply towards the upside making a new high before reversing directions towards the downside ending the week losing all its gains.

We are updating the main count according to the latest price action and as well adding an alternate count which expects Cable to reverse directions and move towards the upside within wave v pink.

It should be noted that both main and alternate counts have almost equal probabilities.

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

6-Hours Main Count

- Invalidation Point: 1.7114
- Confirmation Point: 1.7036
- Downwards Targets: 1.7026 -- 1.6998
- Wave number: (c) green
- Wave structure: Motive
- Wave pattern: Impulse

6-Hours Alternate Count

- Invalidation Point: 1.7036
- Confirmation Point: 1.7193
- Downwards Targets: 1.7222 -- 1.7332
- Wave number: v pink
- Wave structure: Motive
- Wave pattern: Impulse/Ending diagonal

Main Wave Count

This count expects that wave B maroon is unfolding as a zigzag labeled waves (A), (B) and (C) black with waves (A) and (B) black complete and wave (C) black is unfolding towards the upside.

Wave (C) black is unfolding as an impulse labeled waves 1 through 5 blue with waves 1 through 4 blue complete and wave 5 blue is unfolding towards the upside.

Wave 5 blue is expected to be unfolding towards the upside as an impulse with waves i through iii pink complete and wave iv pink is underway.

Wave i pink unfolded as a leading diagonal labeled waves (i) through (v) green.

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

Wave iii pink unfolded as an impulse labeled waves (i) through (v) green with wave (iii) green extending into an impulses labeled waves i through v orange.

Wave iv pink is expected to be unfolding as an expanded flat correction labeled waves (a), (b) and (c) green with waves (a) and (b) green expected complete and wave (c) green is expected to unfold towards the downside.

Within wave (c) green waves i through iv orange are expected complete and wave v orange is expected to unfold towards the downside.

This count would be confirmed by movement below 1.7036.

At 1.7026 wave (c) green will reach 1.382 the length of wave (a) green and at 1.6998 wave (c) green will reach 1.618 the length of wave (a) green.

This count would be invalidated by movement above 1.7114 as wave iv orange may not enter the price territory of wave i orange.

Alternate Wave Count

The difference between main and alternate counts is within the subdivisions of wave iv pink as the alternate count expects that wave iv pink is complete and that wave v pink is starting to unfold towards the upside.

Wave iv pink unfolded as a double combination labeled waves (w), (x) and (y) green.

Wave (w) green developed as a zigzag labeled waves a, b and c orange.

Wave (y) green developed as a zigzag labeled waves a, b and c orange.

This count would be confirmed by movement above 1.7193.

At 1.7222 wave v pink will reach 0.382 the length of wave iii pink and at 1.7332 wave B maroon will reach 50 % the length of wave A maroon.

This count would be invalidated by movement below 1.7036 as within wave v pink no second wave may retrace more than 100 % the length of the first wave.