The article covers the following subjects:
Major Takeaways
- Main scenario: Consider long positions from corrections above the level of 1.3170 with a target of 1.3783 – 1.4050. A buy signal: the price holds above 1.3170. Stop Loss: below 1.3170, Take Profit: 1.3783 – 1.4050.
- Alternative scenario: Breakout and consolidation below the level of 1.3170 will allow the pair to continue declining to the levels of 1.2936 – 1.2740. A sell signal: the level of 1.3170 is broken to the downside. Stop Loss: above 1.3170, Take Profit: 1.2936 – 1.2740.
Main Scenario
Consider long positions from corrections above the level of 1.3170 with a target of 1.3783 – 1.4050.
Alternative Scenario
Breakout and consolidation below the level of 1.3170 will allow the pair to continue declining to the levels of 1.2936 – 1.2740.
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 has been completed as wave 2 of (A). The third wave 3 of (A) has likely started developing on the daily chart, with the first wave of smaller degree i of 3 formed and a local correction completed as the second wave ii of 3. The third wave iii of 3 has presumably started to develop on the H4 time frame, with wave (i) of iii forming as its part. If the presumption is correct, the GBP/USD pair will continue to rise to the levels of 1.3783 – 1.4050. The level of 1.3170 is critical in this scenario as a breakout below it will allow the pair to continue declining to the levels of 1.2936 – 1.2740.
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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