DAILY ELLIOTT WAVE ANALYSIS 01-04-16 – GBPUSD large decline risk in the waves.
Wave (5) blue, downtrend resumed.
My Bias: Long towards 1.2900
Wave Structure: continuing impulsive structure to the downside in wave (5)
Short term wave count: Downside from 1.285 to 1.1900
Long term wave count: decline in wave (5) blue, below parity
Important risk events: GBP: Services PMI, MPC Member Haldane Speaks. USD: ADP Non-Farm Employment Change, Unemployment Claims, ISM Non-Manufacturing PMI, Crude Oil Inventories.
The price action today in cable seems to fit a developing flat correction in wave [iv] green.
The high at 1.2385 is the target to complete wave ‘c’ brown.
The wave count then calls for a decline in wave [v] green, with a likely target in the region of 1.19 to complete, that is where the price would touch the lower trendline of the trend channel once more.
A cross below wave (b) brown at 1.2200 would indicate that wave [v] green is underway.
The bearish confirmation line lies at 1.2080, so the action I have just described would confirm that cable has resumed the bearish trend again, and the larger degree outlook is for continued declines to well below parity.
Waves 1 and 2 red must complete first.
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