GBPUSD alternate count ready to throw a bull party…
Its really not the time to go bottom fishing in the GBPUSD. But if the gbpusd weekly chart intends to continue for a Flat correction, the cable might have seen the very bottom last week. Last week’s close was just 5 pips off from the 1.618 fib extension of the A wave.
But remember, this is not our preferred count. This is an alternate count, just in case Britain wants to prove the world wrong regarding Brexit. However, its a fairly optimistic impulsive arrow. I know.
Our preferred count is that the B wave of the higher degree (marked in brackets) is already complete, and the current trend is a bearish impulse. Refer to my earlier post for a more detailed Elliott wave analysis of the Cable.
Last week’s forecast: Gbpusd weekly outlook 03-07-2016
Going down to lower timeframes, ironically we have the exact same corrective structure from last week, only this time its much smaller in size.
So there is no need for an explanation as the chart speaks for itself. The market is yet to complete the fifth wave of the Primary degree (which will also be the third wave completion of the Cycle degree.) The bearish move next week (if we get it) would be the possible fifth wave completion in 3 different degrees. The 4th wave (forecast from my earlier posts) of the Cycle degree will be due by then.
But let’s not get ahead of ourselves. Let’s trade the bearish moves to the downside, until the market stops giving bearish signals. Its quite a simple approach for trading short term.
So the expectation for next week is still bearish, but the pip range and the momentum could be much lesser compared to last week’s bearish move. After all, the fifth wave has to show some exhaustion.