My interpretation of elliot wave for cable before the European open is as per 1 Hr Chart above. I was expecting a final 5 th wave with a deep plunge of a-b-c corrective wave.
On the first top of 1st vertical line at 5:45 GMT (refer to the 1 min Chart below), the indicators signal a buy position and I assume this might be the 5th Wave. Cable went all the way down to 1.5500.
My second entry was for a buy at 2nd vertical line expecting price reaction. Price move strongly upward and penetrate the previous high. Therefore, my assumption that the 1st vertical line is the 5the wave was wrong.
At 3rd vertical line, indicators were pointing for a sell position. 10 minutes later EURUSD started the downward moved and the cable followed. This was due to early European market report that Greece bond yields rose to levels above 7% compared to German Bond's, after a spokesman for the German Finance Ministery affirmed that German Parliament need to approve the country's contribution to the bailout.
The resultant fall in cable indicated that at 3rd vertival line is the last leg of the 5th wave with a substantial fall in price for a-b-c corrective wave.
