The article covers the following subjects:
Major Takeaways
- Main scenario: Consider short positions from corrections below the level of 1.3040 with a target of 1.2240 – 1.1900. A sell signal: the price holds below 1.3040. Stop Loss: above 1.3070, Take Profit: 1.2240 – 1.1900.
- Alternative scenario: Breakout and consolidation above the level of 1.3040 will allow the pair to continue rising to the levels of 1.3440 – 1.3800. A buy signal: the level of 1.3040 is broken to the upside. Stop Loss: below 1.3010, Take Profit: 1.3440 – 1.3800.
Main Scenario
Consider short positions from corrections below the level of 1.3040 with a target of 1.2240 – 1.1900.
Alternative Scenario
Breakout and consolidation above the level of 1.3040 will allow the pair to continue rising to the levels of 1.3440 – 1.3800.
Analysis
An ascending wave of larger degree B is presumably forming on the weekly chart, with wave (A) of B unfolding as its part. The first wave 1 of (А) is formed on the daily chart, and a downward correction is developing as the second wave 2 of (А). Apparently, wave a of 2 is forming on the H4 time frame, within which the third wave of smaller degree (iii) of a is completed and a local correction is nearing completion as the fourth wave (iv) of a. If the presumption is correct, the GBP/USD pair will continue declining to 1.2240 – 1.1900 after the correction is over. The level of 1.3040 is critical in this scenario as a breakout will enable the pair to continue rising to the levels of 1.3440 – 1.3800.
Price chart of GBPUSD in real time mode
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