The article covers the following subjects:
Highlights and key points
- Main scenario: consider long positions from corrections above the level of 1.2960 with a growth target of 1.3500 – 1.3740. A buy signal: if the price holds above 1.2960. Stop Loss: below 1.2900, Take Profit: 1.3500 – 1.3740.
- Alternative scenario: breakout and consolidation below the level of 1.2960 will allow the pair to continue declining to the levels of 1.2648 – 1.2478. A sell signal: once the level of 1.2960 is broken to the downside. Stop Loss: above 1.3020, Take Profit: 1.2648 – 1.2478.
Main scenario
Consider long positions from corrections above the level of 1.2960 with a target of 1.3500 – 1.3740.
Alternative scenario
Breakout and consolidation below the level of 1.2960 will allow the pair to continue declining to the levels of 1.2648 – 1.2478.
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 is developing. Wave i of (iii) is apparently formed on the H1 chart, and a local correction is developing as wave ii of (iii). If the presumption is correct, the GBPUSD will continue to rise to the levels of 1.3500 – 1.3740 after the correction ends. The level of 1.2960 is critical in this scenario as its breakout will enable the pair to continue declining to the levels of 1.2648 – 1.2478.
Price chart of GBPUSD in real time mode
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