The article covers the following subjects:
Major Takeaways
- Main scenario: Consider short positions from corrections below the level of 1.3400 with a target of 1.2760 – 1.2600. A sell signal: the price holds below 1.3400. Stop Loss: above 1.3440, Take Profit: 1.2760 – 1.2600.
- Alternative scenario: Breakout and consolidation above the level of 1.3400 will allow the pair to continue rising to the levels of 1.3750 – 1.4000. A buy signal: the level of 1.3400 is broken to the upside. Stop Loss: below 1.3360, Take Profit: 1.3750 – 1.4000.
Main scenario
Consider short positions from corrections below the level of 1.3400 with a target of 1.2760 – 1.2600.
Alternative scenario
Breakout and consolidation above the level of 1.3400 will allow the pair to continue rising to the levels of 1.3750 – 1.4000.
Analysis
The first ascending wave of larger degree 1 of (A) is formed on the daily chart, and a bearish correction is completed as the second wave 2 of (А). The third wave 3 of (А) started developing on the H4 time frame, with the first counter-trend wave of smaller degree i of 3 formed as its part. Apparently, a local correction is developing as the second wave ii of 3 on the H1 chart, with wave (a) of ii forming inside. If the presumption is correct, GBP/USD will continue to drop to the levels of 1.2760 – 1.2600. The level of 1.3400 is critical in this scenario as a breakout will enable the pair to continue rising to the levels of 1.3750 – 1.4000.
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
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteFinance broker. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2014/65/EU.
According to copyright law, this article is considered intellectual property, which includes a prohibition on copying and distributing it without consent.
{{value}} ( {{count}} {{title}} )
This post is originally published on LITEFINANCE.
