The article covers the following subjects:
Major Takeaways
- Main scenario: Consider long positions from corrections above 1.3165 with a target of 1.3870–1.4300. A buy signal: the price holds above 1.3165. Stop Loss: below 1.3090, Take Profit: 1.3870–1.4300.
- Alternative scenario: Breakout and consolidation below the level of 1.3165 will allow the pair to continue declining to the levels of 1.2936–1.2736. A sell signal: the level of 1.3165 is broken to the downside. Stop Loss: above 1.3235, Take Profit: 1.2936–1.2736.
Main scenario
Consider long positions from corrections above the level of 1.3165 with a target of 1.3870–1.4300.
Alternative scenario
Breakout and consolidation below the level of 1.3165 will allow the pair to continue declining to the levels of 1.2936–1.2736.
Analysis
On the weekly time frame, an ascending wave of larger degree (A) of B is developing. Within it, wave 1 of (A) has formed, and a downward correction 2 of (A) has been completed. The third wave 3 of (A) appears to continue forming on the daily chart, with wave iii of 3 developing as its part. The third wave of smaller degree (iii) of iii has likely started developing on the H4 chart, with wave i of (iii) formed as its part. If the presumption is correct, the GBP/USD pair will continue to rise to the levels of 1.3870–1.4300 after a local correction ii of (iii) has formed. The level of 1.3165 is critical in this scenario as a breakout below it will allow the pair to continue declining to the levels of 1.2936–1.2736.
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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