Cable is still trading in a wave 4) correction, in an EW ending diagonal of wave C) as part of a higher degree wave II. Wave 4) can be unfolding a complex A-B-C correction, which can look for support, and a bounce near the 1.300/1.295 area, where former swing low of wave B can react as support.

A rally above the 1.320 region would suggest a completed correction and more upside.

GBP/USD, 4h

An ending diagonal is a special type of pattern that occurs at times when the preceding move has gone too far too fast, as Elliott put it. A very small percentage of ending diagonals appear in the C wave position of A-B- C formations. In double or triple threes, they appear only as the final “C” wave. In all cases, they are found at the termination points of larger patterns, indicating exhaustion of the larger movement.

Elliott wave Ending diagonal:

• structure is 3-3-3-3-3
• a wedge shape within two converging lines
• wave 4 must trade into a territory of a wave 1
• appears primarily in the fifth wave position, in the C wave position of A-B- C and in double or triple threes as the final “C” wave