The article covers the following subjects:
Major Takeaways
- Main scenario: Consider long positions from corrections above the level of 1.3130 with a target of 1.3750 – 1.4000. A buy signal: the price holds below 1.3130. Stop Loss: below 1.3080, Take Profit: 1.3750 – 1.4000.
- Alternative scenario: Breakout and consolidation below the level of 1.3130 will allow the pair to continue declining to the levels of 1.2760 – 1.2600. A sell signal: the level of 1.3130 is broken to the downside. Stop Loss: above 1.3180, Take Profit: 1.2760 – 1.2600.
Main scenario
Consider long positions from corrections above the level of 1.3130 with a target of 1.3750 – 1.4000.
Alternative scenario
Breakout and consolidation below the level of 1.3130 will allow the pair to continue dropping to the levels of 1.2760 – 1.2600.
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 unfolding as its part. Apparently, a local correction has finished as the wave (iv) of i, and wave (v) of i has begun to develop on the H1 chart. If the presumption is correct, GBP/USD will continue to rise to the levels of 1.3750 – 1.4000. The level of 1.3130 is critical in this scenario as a breakout will enable the pair to continue declining to the levels of 1.2760 – 1.2600.
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.
