The article covers the following subjects:
Major Takeaways
- Main scenario: Consider long positions from corrections above the level of 1.2230 with a target of 1.2810 – 1.3054. A buy signal: the price holds above 1.2230. Stop Loss: below 1.2200, Take Profit: 1.2810 – 1.3054.
- Alternative scenario: Breakout and consolidation below the level of 1.2230 will allow the pair to continue declining to the levels of 1.1900 – 1.1521. A sell signal: the level of 1.2230 is broken to the downside. Stop Loss: above 1.2260, Take Profit: 1.1900 – 1.1521.
Main Scenario
Consider long positions from corrections above the level of 1.2230 with a target of 1.2810 – 1.3054.
Alternative Scenario
Breakout and consolidation below the level of 1.2230 will allow the pair to continue declining to the levels of 1.1900 – 1.1521.
Analysis
An ascending first wave of larger degree 1 of (A) is formed on the daily chart, and a downside correction is unfolding as the second wave 2 of (А). Wave а of 2 has formed on the H4 chart, with the fifth wave of smaller degree (v) of a presumably completed as its part. Apparently, a bullish wave b of 2 is starting to form on the H1 time frame. If the presumption is correct, GBP/USD can be expected to rise to 1.2810 – 1.3054. The level of 1.2230 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
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteFinance. 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 2004/39/EC.
{{value}} ( {{count}} {{title}} )
This post is originally published on LITEFINANCE.
