GBP/USD (Annual wave analysis, 2008)

Search of an optimal variant of counting has led to change of the wave counting of the pound. Global double or triple three may be forming, and currently we are in the ending wave of the supposed horizontal expanding triangle [X] of x, which is a link in the upward double zigzag x.

The wave structure of the upward price movement for the several last years allows to suppose that impulse C of (D) is completed (and upward zigzag (D) of [X] is completed too), and currently the ending wave (E) of expanding triangle [X] is forming. It may assume the shape of an ordinary or double zigzag.

At the same time the completion of the two-year upward price movement doesn’t rule out that the price may move in accordance with one of the alternative scenarios, shown in the Figures G4..G7, below.

The difference between the alternative scenarios 2 and 3 lies in what the last two-year upward price movement may be considered to be, wave C of [Y] of x in whole — variant 2 in Figure G4 or only its first wave 1 of C of [Y] of x — variant 3 in Figure G5.

The difference of the considered variants lies in the depth of the current consolidation of the dollar. For the first scenario a consolidation to the extent of ~30 figures is expected while for the second scenario to the extent of 100 figures. For the third scenario after a corrective consolidation of the dollar of 10-15 figures again a stage of its global weakening may start. I hope the forming wave structure will prompt in advance which scenario the price will prefer.

Note

This report reveals the analyst opinion of the situation at the moment of its release. This report is subject to change, it will be reflected in daily analyses or in additional articles in Wave analysis.

It should be remembered that EWA forecasts show probable price movements.

Abbreviations

Reference

• The review of the bigger Time-Frames (Annual Wave Analysis, 2008)
• EUR/USD (Annual, 2008)
• USD/CHF (Annual, 2008)
• USD/JPY (Annual, 2008)

• Imaginary Skewer
• Let's Analyze Zigzag Wave Construction
• The Impulsive Decline of the Dollar as One of the Possible Scenarios
• Possible Trade with an Excellent Profit/Risk Ratio

• Wave analysis
• Elliott’s Code: Wave Analysis of the FOREX Market
• Wave Counting Marking
• Methods of Price Movement Projection (EWA)
• How to Apply EWA Forecasts

Dmitry Voznuy
forDmitry@yahoo.com

January 20, 2008

When using any part of the article for publication or analytical materials reference to the author and Alpari is obligatory.