The article covers the following subjects:
Highlights and key points
- Main scenario: consider short positions from corrections below the level of 1.3049 with a target of 1.2240 – 1.1900. A sell signal: the price holds below 1.3049. Stop Loss: above 1.3100, Take Profit: 1.2240 – 1.1900.
- Alternative scenario: breakout and consolidation above the level of 1.3049 will allow the pair to continue rising to the levels of 1.3440 – 1.3800. A buy signal: once the level of 1.3049 is broken to the upside. Stop Loss: below 1.3000, Take Profit: 1.3440 – 1.3800.
Main scenario
Consider short positions from corrections below the level of 1.3049 with a target of 1.2240 – 1.1900.
Alternative scenario
Breakout and consolidation above the level of 1.3049 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 has started developing as second wave 2 of (А). Apparently, wave a of 2 is developing on the H4 chart, with the third wave of smaller degree (iii) of a forming as its part. If the presumption is correct, GBPUSD will continue to drop to the levels of 1.2240 – 1.1900. The level of 1.3049 is critical in this scenario as the 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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