9th Jan 2020:
This weekly view of XAU/GBP also shows the bear count that would see Cycle IV extending. There are many followers of this viewpoint. My view remains bullish because IV was the Cycle end point for resources in general which are not in agreement. From the monthly chart below it can be seen that the point [C] is already above the top of Cycle III which is hardly bearish. Also I doubt that the uncertainty in the markets will now commence to fade. However, I shall bear it in mind.
Within Primary wave [3] it is shown that Intermediate wave (3) exceeded the typical ratio of 1.62 of Intermediate wave (1). A daily view to follow.
The daily view is seen to be dealing with Minor wave 2 of Intermediate wave (5). The retrace ratio of 0.618 is typical, but wave 2 can retrace wave 1 by any amount not greater than wave 1.
From 6th Jan 2020:
The gold price in GBP is similar to the USD take. Cycle V appears to be at the emergence point of the Primary [3] extension. Gold bugs will be aware that because Cycle III was bigger than Cycle I there is no constraint placed upon Cycle V. This follows the rule that the 3rd waves in an impulsive pattern cannot be the smallest of the motive waves (1st, 3rd, 5th).
The 3rd wave is usually the longest, which is often brought about by the extension of the internal 3rd wave. Typically the 3rd wave will target 1.62 of the 1st wave. It is observed here that Primary wave [3] has so far achieved parity with [1]. Two projections are shown. They have equal weighting.
The purpose of sharing this is to encourage broader interest with the application of the Elliott Wave theory.
The standard version of the theory applies.
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