Gbp/Usd
Weekly chart trend: Mixed. Main price points: 1.3502, and 1.9336 Looking for: Wave 4).
Cable is in a very powerful recovery mode from the 1.3502 lows that were hit in January of 2009. Prices have already traded up to the 50% retracement area of the wave 3)/C distance where a temporary top could be in place for some time, if we consider the possible high of a red wave C/III. With this being said, traders should be patient as the market may react with a powerful turning point, if we consider that a top of wave 4) could also be the case. If that happens then wave 5) should follow lower.
On the other hand, the market may also be trading at the start of a new uptrend that will lead into new highs, but in this case the A), B), C) (zig-zag with an extended wave C) ) will be the correct count from the 2.1161 high to 1.3502 low. A break of the 1.9336 area will confirm that scenario.
Daily chart trend: Short possibilities. Main price points: 1.5982 and 1.7041 Looking for: Move lower
The cable price looks to have toped at the 1.7041 area with a black wave V) of an extended red wave C/III. Prices fell very sharply from these highs to current level, which suggests a temporary down-trend. If we are on the right track then the prices should trade down, near to the lower, parallel support line area.
4 Hour chart trend: Short. Main price points: 1.5982, and 1.6623. Looking for: Wave C)/III)
Cable is trading higher at the moment, which seems to be a corrective blue wave iv leg with wave v to follow. First target of an expected wave v is shown at the 161.8% Fibonacci support area, followed by a second and more likely target somewhere below the 1.6 zone. In this zone, we will be looking for a possible bottom in C) leg of corrective structure from 1.0741 top.
S&P Futures Bullish Target at 1050
Weekly chart trend: Mixed. Main price points: 665.50, and 1252.50. Looking for: Move to 50% Fibonacci level.
S&P futures are very bullish on the weekly chart, after a powerful bounce off the 665.50 support area that was established at the start of this year. This recent uptrend, however, could be a pull-back in wave 4 of a bearish impulse count, with wave 5 yet to come. In this case, wave 4 must not overlap the territory of wave 1.
The converse technical view is that it may also be a start of a new long-term uptrend, if we consider a possible three wave structure from the 1586 top to the 665.50 lows. However, the next target is shown around the 50% Fibonacci level since the 38.2% retracement did not hold.
Daily chart trend: Long. Main price points: 865, and 1030-1050. Looking for: Two wave counts
The wave count on the weekly chart is considered to a tricky (wave 4 or not); the price structure on a daily chart is also showing us two valid scenarios. On the left side of the chart below, it is showing an impulse structure with five waves up from the 665 lows to current highs, with wave 5 around the target zone. If this is the case, wave 4 discussed on the weekly chart will be rejected, since the fourth wave is a corrective wave, which means it cannot be sub-divided by a five wave move.
On the right side of the chart, we have a different picture where you can see a wave count with a clear zig-zag correction, which is valid for a wave 4 scenario.
Until one of the possible scenarios plays out, we know that prices are trading around the top (wave 5 or wave C), which suggests a temporary turning point around the Fibonacci resistance levels.
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