The article covers the following subjects:
Highlights and key points
- Main scenario: consider long positions from corrections above the level of 1.2586 with a growth target of 1.3250 – 1.3740. A buy signal: after the level of 1.2586 is broken to the upside. Stop Loss: below 1.2550, Take Profit: 1.3250 – 1.3740.
- Alternative scenario: breakout and consolidation below the level of 1.2586 will allow the pair to continue declining to the levels of 1.2300 – 1.2050. A sell signal: after the level of 1.2586 is broken to the downside. Stop Loss: above 1.2610, Take Profit: 1.2300 – 1.2050.
Main scenario
Consider long positions above the level of 1.2586 with a target of 1.3250 – 1.3740 once a correction is formed.
Alternative scenario
Breakout and consolidation below the level of 1.2586 will allow the pair to continue declining to the levels of 1.2300 – 1.2050.
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. On the H1 chart, apparently, the first wave of smaller degree (i) of iii is formed, and a local correction is nearing completion as the second wave (ii) of iii. If the presumption is correct, the GBPUSD will continue to rise to the levels of 1.3250 – 1.3740 after the correction ends. The level of 1.2586 is critical in this scenario as its breakout will enable the pair to continue declining to the levels of 1.2300 – 1.2050.
Price chart of GBPUSD in real time mode
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