GBP/USD Daily Chart

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This chart of the GBP/USD displays the possibility of a wave 5 higher. The GBP/USD shares trending characteristics with the heliocentric orbit of Mercury. This correlation is evident with the blue planetary fan lines over-layed on price. The indicator at the bottom of the chart displays Mercury's heliocentric declination. As Mercury changes direction from south declination to north declination, this indicator will also move from the lower boundary to the higher boundary. With this understanding, you will notice that when Mercury is exactly at the Sun's equator, this indicator will be directly at the middle line.

I have used E.W. labelling on the Mercury indicator to reveal a correlation between wave termination and declination cycles. It is amazing to find out how many of the Elliott Waves terminate when Mercury is at maximum south or north declination. Also, you will notice that many waves terminate when Mercury is at the equator line (zero degrees declination).

With this knowledge, we can now forecast a reversal in the GBP/USD. It appears as though corrective wave (4) has taken on a 3,3,5 pattern. Since the termination of this correction occurs while Mercury is at max-south declination, a strong rally can be considered. As with all other E.W. terminations, we would expect wave (5) to terminate when Mercury is at the equator line (16/3/2010 - 23/3/2010) OR when Mercury approaches max-north declination (3/29/2010 - 5/04/2010). The price targets which coincide with the time targets are labelled on the chart. Naturally, price does not have to reverse with this current declination cycle, major trends obviously last for many of these smaller cycles.