The article covers the following subjects:
Major Takeaways
- Main scenario: After the correction ends, consider short positions below the level of 1.3300 with a target of 1.2936 – 1.2740. A sell signal: the price holds below 1.3300. Stop Loss: above 1.3300, Take Profit: 1.2936 – 1.2740.
- Alternative scenario: Breakout and consolidation above the level of 1.3300 will allow the pair to continue rising to the levels of 1.3475 – 1.3783. A buy signal: the level of 1.3300 is broken to the upside. Stop Loss: below 1.3300, Take Profit: 1.3475 – 1.3783.
Main Scenario
Consider short positions below the level of 1.3300 with a target of 1.2936 – 1.2740 once the correction is completed.
Alternative Scenario
Breakout and consolidation above the level of 1.3300 will allow the pair to continue rising to the levels of 1.3475 – 1.3783.
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 continuing to develop as the second wave ii of 3. Wave (c) of ii is presumably developing on the H4 chart. Within it, wave iii of (c) has formed and a local corrective wave iv of (c) is nearing completion. If the presumption is correct, the GBP/USD pair will continue declining to 1.2936 – 1.2740 after the correction is over. The level of 1.3300 is critical in this scenario as a breakout will enable the pair to continue rising to the levels of 1.3475 – 1.3783.
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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