GBPUSD: Elliott wave analysis and forecast for 07.05.2021 – 14.05.2021

Main scenario: consider short positions from corrections below the level of 1.4237 with a target of 1.3572 – 1.3446 once a correction is completed.

Alternative scenario: breakout and consolidation above the level of 1.4237 will allow the pair to continue rising to the levels of 1.4450 – 1.4700.

Analysis: Daily time frame: presumably, the first wave of larger degree (1) finished developing, with wave 5 of (1) formed inside. A descending correction started developing as wave (2) on the H4 time frame, with wave A of (2) formed inside. Apparently, wave B of (2) is developing on the H1 time frame, with wave a of B and wave b of B formed and wave c of B developing inside. If this assumption is correct, the pair will continue to fall to 1.3572 – 1.3446 after the corrective wave B of (2) is completed. The level of 1.4237 is critical in this scenario as the breakout will enable the pair to continue rising to the levels of 1.4450 – 1.4700.



 

Price chart of GBPUSD in real time mode

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