The article covers the following subjects:
Highlights and key points
- Main scenario: consider long positions from corrections above the level of 1.2610 with a target of 1.3250 – 1.3740. A buy signal: after the level of 1.2610 is broken. Stop Loss: 1.2500, Take Profit: 1.3740.
- Alternative scenario: breakout and consolidation below the level of 1.2610 will allow the pair to continue declining to the levels of 1.2300 – 1.2030. A sell signal: after the level of 1.2610 is broken. Stop Loss: 1.2710, Take Profit: 1.2030.
Main scenario
Consider long positions from corrections above the level of 1.2610 with a target of 1.3250 – 1.3740.
Alternative scenario
Breakout and consolidation below the level of 1.2610 will allow the pair to continue declining to the levels of 1.2300 – 1.2030.
Analysis
An ascending wave of larger degree В is presumably developing on the daily time frame, with the third wave 3 of (A) of B unfolding as its part. A corrective wave ii of 3 is completed, and wave iii of 3 is forming on the H4 time frame. Apparently, the third wave of smaller degree (iii) of iii is developing on the H1 chart, within which wave iii of (iii) is formed and a local correction is unfolding as wave iv of (iii). If the presumption is correct, the GBPUSD will continue to rise to the levels of 1.3250 – 1.3740 after the correction ends. The level of 1.2610 is critical in this scenario as its breakout will allow the pair to continue declining to the levels of 1.2300 – 1.2030.
Price chart of GBPUSD in real time mode
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