The article covers the following subjects:
Major Takeaways
- Main scenario: Consider short positions from corrections below the level of 1.3445 with a target of 1.2760 – 1.2600. A sell signal: the price holds below 1.3445. Stop Loss: above 1.3500, Take Profit: 1.2760 – 1.2600.
- Alternative scenario: Breakout and consolidation above the level of 1.3445 will allow the pair to continue rising to the levels of 1.3750 – 1.4000. A buy signal: the level of 1.3445 is broken to the upside. Stop Loss: below 1.3380, Take Profit: 1.3750 – 1.4000.
Main Scenario
Consider short positions from corrections below the level of 1.3445 with a target of 1.2760 – 1.2600.
Alternative Scenario
Breakout and consolidation above the level of 1.3445 will allow the pair to continue rising to the levels of 1.3750 – 1.4000.
Analysis
The ascending first wave of larger degree 1 of (A) is formed on the daily chart, and the bearish correction is completed as the second wave 2 of (А). The third wave 3 of (А) started developing on the H4 time frame, with the first counter-trend wave of smaller degree i of 3 formed as its part. Apparently, a local correction began forming as the second wave ii of 3 on the H1 chart, with wave (a) of ii developing within. If the presumption is correct, GBP/USD will continue to drop to the levels of 1.2760 – 1.2600. The level of 1.3445 is critical in this scenario, as a breakout will enable the pair to continue rising to the levels of 1.3750 – 1.4000.
This forecast is based on the Elliott Wave Theory. When developing trading strategies, it is essential to consider fundamental factors, as the market situation can change at any time.
Price chart of GBPUSD in real time mode
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