The article covers the following subjects:
Major Takeaways
- Main scenario: After the correction ends, consider short positions below the level of 1.3443 with a target of 1.2100 – 1.1900. A sell signal: the level of 1.3443 is broken to the downside. Stop Loss: above 1.3490, Take Profit: 1.2100 – 1.1900.
- Alternative scenario: Breakout and consolidation above the level of 1.3443 will allow the pair to continue rising to the levels of 1.3700 – 1.4000. A buy signal: the level of 1.3443 is broken to the upside. Stop Loss: below 1.3390, Take Profit: 1.3700 – 1.4000.
Main Scenario
Consider short positions below the level of 1.3443 with a target of 1.2100 – 1.1900 once the correction is completed.
Alternative Scenario
Breakout and consolidation above the level of 1.3443 will allow the pair to continue rising to the levels of 1.3700 – 1.4000.
Analysis
The ascending first wave of larger degree 1 of (A) is presumably formed on the daily chart, and the bearish correction is unfolding as the second wave 2 of (А). Wave a of 2 is formed on the H4 time frame, and the bullish correction seems to near completion as wave b of 2. Apparently, wave (c) of b is nearing completion on the H1 time frame, with wave v of (c) developing as its part. If the presumption is correct, the GBP/USD pair will continue to drop to the levels of 1.2100 – 1.1900 after wave b of 2 is completed. The level of 1.3443 is critical in this scenario as a breakout will enable the pair to continue rising to the levels of 1.3700 – 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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