The article covers the following subjects:
Highlights and key points
- Main scenario: consider long positions from corrections above the level of 1.2791 with a growth target of 1.3400 – 1.3740. A buy signal: after the price consolidates above 1.2791. Stop Loss: below 1.2760, Take Profit: 1.3400 – 1.3740.
- Alternative scenario: breakout and consolidation below the level of 1.2791 will allow the pair to continue declining to the levels of 1.2478 – 1.2300. A sell signal: after the level of 1.2791 is broken to the downside. Stop Loss: above 1.2820, Take Profit: 1.2478 – 1.2300.
Main scenario
Consider long positions from corrections above the level of 1.2791 with a target of 1.3400 – 1.3740.
Alternative scenario
Breakout and consolidation below the level of 1.2791 will allow the pair to continue declining to the levels of 1.2478 – 1.2300.
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. The first wave of smaller degree (i) of iii appears to have formed on the H1 time frame, and a local correction is presumably completed as the second wave (ii) of iii. The wave (iii) of iii is currently unfolding. If this assumption is correct, the GBPUSD pair will continue rising to 1.3400 – 1.3740. The level of 1.2791 is critical in this scenario as its breakout will enable the pair to continue declining to the levels of 1.2478 – 1.2300.
Price chart of GBPUSD in real time mode
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