The article covers the following subjects:
Major Takeaways
- Main scenario: Once the correction has been completed, consider short positions below the level of 1.3510 with a target of 1.3050–1.2936. A sell signal: the correction ends and the price holds below 1.3510. Stop Loss: above 1.3550, Take Profit: 1.3050–1.2936.
- Alternative scenario: Breakout and consolidation above the level of 1.3510 will allow the pair to continue rising to the levels of 1.3660–1.3870. A buy signal: the level of 1.3510 is broken to the upside. Stop Loss: below 1.3470, Take Profit: 1.3660–1.3870.
Main Scenario
Consider short positions below 1.3510 with a target of 1.3050–1.2936 once the correction is completed.
Alternative Scenario
Breakout and consolidation above 1.3510 will allow the pair to continue rising to the levels of 1.3660–1.3870.
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) appears to be unfolding on the daily chart. Within it, wave i of 3 has formed, and bearish correction ii of 3 is developing. On the H4 time frame, wave (c) of ii is developing. Within it, wave iii of (c) has formed, and a local correction iv of (c) is nearing completion. If the presumption is correct, GBP/USD will continue falling to 1.3050–1.2936 after the correction is completed. The level of 1.3510 is critical in this scenario as a breakout above it will enable the pair to continue rising to the levels of 1.3660–1.3870.
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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