The article covers the following subjects:
Highlights and key points
- Main scenario: consider long positions from corrections above the level of 1.2770 with a target of 1.3250 – 1.3740. A buy signal: after the level of 1.2770 is broken. Stop Loss: 1.2700; Take Profit: 1.3740.
- Alternative scenario: breakout and consolidation below the level of 1.2770 will allow the pair to continue declining to the levels of 1.2594 – 1.2300. A sell signal: after the level of 1.2770 is broken. Stop Loss: 1.2850; Take Profit: 1.2300.
Main scenario
Consider long positions from corrections above the level of 1.2770 with a target of 1.3250 – 1.3740.
Alternative scenario
Breakout and consolidation below the level of 1.2770 will allow the pair to continue declining to the levels of 1.2594 – 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. Apparently, the third wave of smaller degree (iii) of iii is developing on the H1 chart, within which wave i of (iii) is formed and a local correction is presumably completed as wave ii of (iii). If the presumption is correct, the GBPUSD pair will continue to rise to the levels of 1.3250 – 1.3740. The level of 1.2770 is critical in this scenario as its breakout will enable the pair to continue declining to the levels of 1.2594 – 1.2300.
Price chart of GBPUSD in real time mode
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