The article covers the following subjects:
Major Takeaways
- Main scenario: Consider short positions from corrections below the level of 1.2571 with a target of 1.1900 – 1.1521. A sell signal: the price holds below 1.2571. Stop Loss: above 1.2630, Take Profit: 1.1900 – 1.1521.
- Alternative scenario: Breakout and consolidation above the level of 1.2571 will allow the pair to continue rising to the levels of 1.3054 – 1.3440. A buy signal: the level of 1.2571 is broken to the upside. Stop Loss: below 1.2510, Take Profit: 1.3054 – 1.3440.
Main Scenario
Consider short positions from corrections below the level of 1.2571 with a target of 1.1900 – 1.1521.
Alternative Scenario
Breakout and consolidation above the level of 1.2571 will allow the pair to continue rising to the levels of 1.3054 – 1.3440.
Analysis
The ascending wave of larger degree (A) is likely unfolding on the weekly time frame, within which the first wave 1 of (A) is formed. On the daily chart, a descending correction is developing as the second wave 2 of (А), with wave a of 2 unfolding as its part. Apparently, the fifth wave of smaller degree (v) of a is developing on the H4 time frame. If this assumption is correct, the GBP/USD pair will continue to fall to 1.1900 – 1.1521. The level of 1.2571 is critical in this scenario as a breakout will enable the pair to continue rising to the levels of 1.3054 – 1.3440.
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.
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