Main scenario: upon correction, consider long positions above the level of 1.2515 with a target of 1.3145 – 1.3740.
Alternative scenario: breakout and consolidation below the level of 1.2515 will allow the pair to continue declining to the levels of 1.2300 – 1.1965.
Analysis: an ascending wave of larger degree B is presumably forming on the daily time frame, with the third wave 3 of (A) of B unfolding as its part. On the H4 chart, a corrective wave ii of 3 is completed, and wave iii of 3 is developing. The first wave of smaller degree (i) of iii is formed on the H1 time frame; a local correction is nearing completion as the second wave (ii) of iii, within which wave c of (ii) is coming to its end. If the presumption is correct, the GBPUSD will continue to rise to the levels of 1.3145 – 1.3740 after correction ends. The level of 1.2515 is critical in this scenario as its breakout will enable the pair to continue declining to the levels of 1.2300 – 1.1965.
Price chart of GBPUSD in real time mode
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