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The first of the minor wave is straight down from 2.0652 till 2.0181. Then the price had made a 3 wave pattern which had ended at 2.0462.. I take that wave as minor wave 2 formation.. then the decline from 2.0462 till 2.0155 is considered as wave 3. Wednesday’s movement is the end of wave 3 and beginning of the wave 4 and had unfolded in a simple 1 wave formation (the rules of alternation is not broken here because wave 2 had unfolded in 3 wave sequence whereas the wave 4 pattern is one solid wave) thursday’s and friday’s decline is the final minor formation which is wave 5 in a leading diagonal formation..

The price had bounced at the bottom trendline and had created a new low at 2.0152… so in my counting the 5 wave leading diagonal formation for a larger degree wave 1 down had completed.. next is wave 2.. I will wait at FR 50.0 (2.0400) and FR 61.8(2.0458)… if the price does reverse there… I think we will ride a mega wave down… let’s see the pattern unfolds…

As I had predicted yesterday the price had declined and now had made a new daily low at 2.0152.. The price had managed to break the EMA 55 at the daily chart where previously it had found support and also the FE 61.8 line(2.0214)…so the next tp could be EMA 100 support line (around 2.0060) or 2.0102 FE 100.0.. Or it could make a corrective wave to the FR 50.0 line (2.0400) thus making the wave 2 complete.. Let’s see how this day would end..

Here my update on what is happening with GBP/USD yesterday and today from Elliot Wave perspective. This could still be a wave 1 pattern because from what i’ve learned.. wave 1 could unfold in two type of formation… one is the straight impulse wave down.. and the other one is the leading diagonal formation.. so in this pattern the minor wave 4 formation can overlap the minor wave 1 top.

The first of the minor wave is straight down from 2.0652 till 2.0181. Then the price had made a 3 wave pattern which had ended at 2.0462.. I take that wave as minor wave 2 formation.. then the decline from 2.0462 till 2.0155 is considered as wave 3. Yesterday’s movement is the wave 4 and had unfolded in a simple 1 wave formation (the rules of alternation is not broken here because wave 2 had unfolded in 3 wave sequence whereas the wave 4 pattern is one solid wave) so today is the end of the 5 wave pattern.. we are now at the wave 5.. let see if i’m correct.. if the price broke higher than 2.04 then my counting will be void….

When I look back at the chart.. I just remembered that in wave 1 it could make an impulsive wave or a 5 wave Leading Diagonal formation.. if you draw a trendline from the top 2.0652 and then to the top 2.0462 (wave B or 2) the uptrend for today seemed to be contained by the trendline.. Technically this could still be in the wave 1 formation.. Price had made 4 wave formations already.. if the price today retreated and made a new low then we could still be on our way down…

In my excitement i had made a grave mistake in making my count… As I was writing this cable had reverse at the minimum wave C fibo expansion which comes at 2.0171.. The pair then made a sudden move upward… Please accept my apologies..

Mondays price had hit the 61.8 fibo retracement line but had opened and closed under the 50.0 fibo retracement line.. this constitute a failure to break higher and this is beginning to look more and more like this will be a wave 3 down.. and if i’m prediction are correct this will unfold in a 5 wave down sequence.. which is contained in a larger degree wave 1 down… prediction for this wave 3 down is taken from this three point reading to determine it’s target

point A : 2.0652

point B : 2.0181

point C : 2.0462

TP1 : 2.0171

TP2 : 1.9988 (might find a temporary resistance to reach here because EMA 100 daily line is at this price)

TP3 : 1.9698 (might find a temporary resistance to reach here because EMA 200 daily line is at this price)

Based on my analysis at Daily chart I had come up with this :-

Wave 1 or A started at 2.0652 and had ended at 2.0181

Wave 2 or B started at 2.0181 and I predict that it’ll end today after making a 3 wave minor correction (abc).

Wave 3 or C is starting….. stay tuned..