Analysis for August 28th, 2014
In our previous review, “The final zigzag. Wave analysis of GBP/LPY for 18.08.2014”, we discussed one of the possible scenario how the price may complete the uptrend inside a possible impulse
5 of (1).
Probably, the market is forming the final ascending
zigzag(v) of [v] of 5 of
ending diagonal triangle[v] of 5. Possibly, the price completed a descending correction
b of (v), which may be followed by an ascending wave
с of (v).
The critical level for this scenario until the price completes an ascending
zigzag (v) of [v] is at the level where this
zigzag started, 170.40. In order to finish a complete
diagonal triangle[v], the price needs to cross the confirming level at 175.33, which it the closest target.
Wave structure on the daily chart hasn’t changed much – the price is about to complete the final wave
[v] of 5 of an ascending impulse
5 in the form of an
ending diagonal triangle.
Considering an
extension inside wave
[iii] of 5 of an impulse
5 of (1), it’s quite logical to expect that waves
[v] of 5 and
[i] of 5 may be equal in length and the price may complete this
diagonal triangle[v] of 5 lower than 180. However, at the same time we should note, that wave
(iii) of [v] of
diagonal triangle[v] of 5 is shorter than its first wave,
(i) of [v], which means that the pair is expected to finish this
diagonal triangle[v] of 5 not higher than ~178.
However, at the same time one should remember that any possible scenario is subjective and the market may move in a completely different direction.
RoboForex Analytical Department