Main scenario: consider short positions from corrections below the level of 1.3831 with a target of 1.3157 – 1.2831.
Alternative scenario: breakout and consolidation above the level of 1.3831 will allow the pair to continue rising to the levels of 1.4050 – 1.4241.
Analysis: Daily chart: the first wave of larger degree (1) is formed, and a downside correction continues forming as wave (2). H4 chart: waves A of (2) and B of (2) are formed, and wave C of (2) is developing. Apparently, the first wave of smaller degree i of C is formed on the H1 chart. If this assumption is correct, the pair will continue to fall to 1.3157 – 1.2831 once a local correction forms as wave ii of C. The level of 1.3831 is critical in this scenario as a breakout will enable the pair to continue rising to the levels of 1.4050 – 1.4241.
Price chart of GBPUSD in real time mode
The content of this article reflects the author’s opinion and does not necessarily reflect the official position of LiteForex. The material published on this page is provided for informational purposes only and should not be considered as the provision of investment advice for the purposes of Directive 2004/39/EC.