The article covers the following subjects:
Highlights and key points
- Main scenario: consider long positions from corrections above the level of 1.2907 with a target of 1.3600 – 1.3800. A buy signal: if the price holds above level 1.2907. Stop Loss: below 1.2870, Take Profit: 1.3600 – 1.3800.
- Alternative scenario: breakout and consolidation below the level of 1.2907 will allow the pair to continue declining to the levels of 1.2600 – 1.2288. A sell signal: once the level of 1.2907 is broken to the downside. Stop Loss: above 1.2940, Take Profit: 1.2600 – 1.2288.
Main scenario
Consider long positions from corrections above the level of 1.2907 with a target of 1.3600 – 1.3800.
Alternative scenario
Breakout and consolidation below the level of 1.2907 will allow the pair to continue declining to the levels of 1.2600 – 1.2288.
Analysis
An ascending wave of larger degree B is presumably forming on the daily chart, with the third wave 3 of (A) of B unfolding as its part. On the H4 chart, there’s wave iii of 3 forming, within which the third wave of smaller degree (iii) of iii finished developing. On the H1 time frame, apparently a local correction finished developing as the fourth wave (iv) of iii, and the fifth wave (v) of iii started forming. If the presumption is correct, the GBPUSD pair will continue to rise to the levels of 1.3600 – 1.3800. The level of 1.2907 is critical in this scenario as its breakout will enable the pair to continue declining to the levels of 1.2600 – 1.2288.
Price chart of GBPUSD in real time mode
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