GBPUSD: Getting Ready For Action!

In our previous analysis GBPUSD: Is Downtrend Over Yet ?! the main count expected Cable to unfold in a sideways manner and Cable unfolded as expected and target was reached and exceeded.

This week`s main count expects Cable to reverse directions and move downwards while the alternate count expects that Cable has more to offer towards the upside to complete a corrective structure before resuming its downtrend.

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

Main Count

- Invalidation Point: 1.5267
- Confirmation Point: 1.5027
- Upwards Target: 1.4992 -- 1.4972
- Wave number: (5) aqua
- Wave structure: Motive
- Wave pattern: Impulse/Ending diagonal

Alternate Count

- Invalidation Point: 1.5446 -- 1.5027
- Confirmation Point: 1.5267
- Upwards Target: 1.5285
- Wave number: 2 red
- Wave structure: Corrective
- Wave pattern: Double zigzag

Elliott Wave chart analysis for the GBPUSD for 16th 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.

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

Wave (y) 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 with wave 1 purple unfolding as a leading diagonal labeled waves (1) through (5) aqua.

This count expects that wave iii pink is underway with waves (i) and (ii) green complete and wave (iii) green is underway.

Wave (i) green unfolded as an impulse labeled waves i through v orange.

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

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

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) through (4) aqua are complete and wave (5) aqua is unfolding downwards.

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 1.4972 wave 3 purple would reach 200 % of wave 1 purple.

This count would be invalidated by movement above 1.5267 as within wave (5) aqua no second wave may retrace more than 100 % of its first wave.

Alternate Wave Count

This count expects that first and second waves continue to unfold and that a third wave is yet to unfold.

Within wave (3) aqua it is expected that wave 1 red is complete and that wave 2 red is at its late stages towards the upside.

Within wave 2 red it is likely that waves w and x lime are complete and wave y lime is unfolding upwards.

This count would be confirmed by movement above 1.5267.

At 1.5285 wave 2 red would reach 0.618 of wave 1 red.

This count would be invalidated by movement above 1.5446 as wave 2 red may not retrace more than 100 % of wave 1 red and as well this count would be invalidated by movement below 1.5027 as within wave y lime no B wave may retrace more than 100 % of its A wave.

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