The article covers the following subjects:
Major Takeaways
- Main scenario: Consider long positions from corrections above the level of 1.2105 with a target of 1.2764 – 1.2923. A buy signal: the price holds above 1.2105. Stop Loss: below 1.2050, Take Profit: 1.2764 – 1.2923.
- Alternative scenario: Breakout and consolidation below the level of 1.2105 will allow the pair to continue declining to the levels of 1.1900 – 1.1521. A sell signal: the level of 1.2105 is broken to the downside. Stop Loss: above 1.2150, Take Profit: 1.1900 – 1.1521.
Main Scenario
Consider long positions from corrections above the level of 1.2105 with a target of 1.2764 – 1.2923.
Alternative Scenario
Breakout and consolidation below the level of 1.2105 will allow the pair to continue declining to the levels of 1.1900 – 1.1521.
Analysis
The ascending first wave of larger degree 1 of (A) is presumably formed on the daily chart, and the bearish correction is unfolding as the second wave 2 of (А). Wave a of 2 is complete on the H4 time frame, and the bullish correction is unfolding as wave b of 2. Apparently, wave (а) of b is formed on the H1 time frame, and wave (b) of b has started unfolding. If this assumption is correct, the GBP/USD pair will continue to rise to 1.2764 – 1.2923 once wave (b) of b is complete. The level of 1.2105 is critical in this scenario as its breakout will enable the pair to continue declining to the levels of 1.1900 – 1.1521.
This forecast is based on the Elliott Wave Theory. When developing trading strategies, it is essential to consider fundamental factors, as the market situation can change at any time.
Price chart of GBPUSD in real time mode
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