$GBP vs. $CHG offers a high-probability of a geometric completion following the price pathway speculated in the chart (dashed orange pathway):
Predictive/Forecasting Model defined the following two qualitative targets:
1 - TG-Hi = 1.54017 - 09 AUG 2015
2 - TG-Hix = 1.57575 - 09 AUG 2015
Current price action may be completing a 5th wave of a larger impulse, with 5th wave pending a higher structural level in the vicinity of the targets defined by the Predictive/Forecasting Model. Note how well the EW's Rule of Alternations worked here between a curt 2nd wave and a protracted 4th wave.
Two possible market geometric development rest on the pattern and the Geo , albeit Point-4 remains speculative and ill-defined at this early stage. As indicated above, a price decline is expected, with support corresponding to an internal structural (i.e.: internal to the highlighted geometry).
A would seek completion at or near the first Model's forecast targetat 1.54017, whereas a Geo would allow for a temporary excursion to the topside of the WW, ideally along the 3-5' Line, convergent to the Model's highest defined target at 1.57575.
In the background, an interim decline to carve out a higher low is expected, defining Point-4 on the way to a geometric completion of WW or Geo . At the foreground, the Predictive/Forecasting Model defined loftier targets than , but in line with a Geo completion.
Predictive Analysis & Forecasting
Durango, Colorado - USA
11 AUG 2015 - UPDATE:
$GBPCHF hits target at 1.54017; Meets resistance; Background geometry remains unfolds:
$GBP $CHF #BOE #SNB #franc
24 AUG 2015 - UPDATE:
$GBPCHF hit higher-prob. 1.47093 target; Reversal to 1.57575 target now more probable:
$GBP $CHF #BOE #SNB #forex
@iefan - I saw your query in the ATHENA room ... Here is what I am looking at for now:
Basically, price failed to deliver a simple ZZ geometry to a lower level (orange line). Although the ZZ geometry occurred, it since carved a higher-high.
While this provides the outline for a potential ATHENA application in the diverging lines, I am not certain yet that it would occur.
In any case, YES: I do trade the last two legs of the ATHENA (4-5 Leg, then Point-5 reaction).
Now, looking at other $GBP charts, one in particular caught my attention, suggesting that it could bring $GBP down, and thus by correlation, could bring this one down to an undershoot of the geometry in $GBPCHF as well (pink arrow down in $GBPCHF) - I am referring to $GBPAUD where a 5' is nearing completion.
Per Geo's Off-Set Rule #2, we are thus looking at this potential move:
Hence, the correlation could carry through to the $GBPCHF and bring price to completion of its internal geometry (black).
Price ignores geometry; Continues to rally to Model's TG-Hix target:
Prior chart suggested possibility of a limited decline t 1.43051. Instead, consider this shallower interim option, whereby price would complete a reciprocal ab = cd symmetry to rest at the value illustrated in the chart ... Bullish target remain intact and in force:
Bullish target remains intact and in force. However, expect an interim respite from bulls, seeking repose at 1.49095 before recommencing a final advance to Qual-Target TG-Hix = 1.57575, defined this past August 09th, 2015::
Price continues to rally ... Did not retrace as low as expected (1.49095) ... Forecast remains intact and in force:
Here is an example where the Wolfe Wave would have been much more precise a method than the Geo's, considering that the off-set at Point-1 in the Geo caused a miss on Point-5:
Based on the Wolfe Wave, expect price to seek validation along the 1-4 Line.
Now, also beware of this potential larger geometry, since the Model's bullish target remains unanswered:
Target a 1.57575 remains intact and in force. Price remains close to dashed arrow forecast - Note that I have expanded the geometry (PINK), and added an internal Geo (BLACK), suggesting a probable or near completion of the 5-plot cycle - This suggests an imminent rallying:
Aside from these geometries, Model remains BULLISH, eyeing the original 1.57575 target.
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Predictive Analysis & Forecasting
Durango, Colorado - USA
LinkedIn: David Alcindor
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A pretty forceful reaction typically ensues from this pattern.