Main scenario: consider short positions from corrections below the level of 1.3514 with a target of 1.3157 – 1.2831.
Alternative scenario: breakout and consolidation above the level of 1.3514 will allow the pair to continue rising to the levels of 1.3832 – 1.4050.
Analysis: Daily chart: the first wave of larger degree (1) has formed and a downside correction continues forming as wave (2). Wave C of (2) is forming on the H4 chart, with the third wave of smaller degree 3 of C completed as part of it. On the H1 chart, a corrective wave 4 of C has presumably started unfolding. If the presumption is correct, the pair will continue dropping to 1.3157 – 1.2831 once the wave 4 of C is formed. The level of 1.3514 is critical in this scenario as a breakout will enable the pair to continue rising to the levels of 1.3832 – 1.4050.
Price chart of GBPUSD in real time mode
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