Main scenario: consider short positions from corrections below the level of 1.3909 with a target of 1.3400 – 1.3157.
Alternative scenario: breakout and consolidation above the level of 1.3909 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) has 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. On the H1 chart, the third wave of smaller degree iii of C appears to have formed, and a local correction is presumably completed as wave iv of C. If this assumption is correct, the pair will continue to fall to 1.3400 – 1.3157. The level of 1.3909 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
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