The article covers the following subjects:
Major Takeaways
- Main scenario: Consider short positions from corrections below the level of 1.3564 with a target of 1.3300 – 1.3240. A sell signal: the price holds below 1.3564. Stop Loss: above 1.3564, Take Profit: 1.3300 – 1.3240.
- Alternative scenario: Breakout and consolidation above the level of 1.3564 will allow the pair to continue rising to the levels of 1.3783 – 1.4050. A buy signal: the level of 1.3564 is broken to the upside. Stop Loss: below 1.3564, Take Profit: 1.3783 – 1.4050.
Main Scenario
Consider short positions from corrections below the level of 1.3564 with a target of 1.3300 – 1.3240.
Alternative Scenario
Breakout and consolidation above the level of 1.3564 will allow the pair to continue rising to the levels of 1.3783 – 1.4050.
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) is developing on the daily chart, with the first wave of smaller degree i of 3 formed and a local correction completed as the second wave ii of 3. The third wave iii of 3 has started unfolding. Wave (i) of iii has formed on the H4 chart, and wave (ii) of iii has started developing as a local correction. If the presumption is correct, GBP/USD will continue to drop to the levels of 1.3300 – 1.3240. The level of 1.3564 is critical in this scenario as a breakout above it will enable the pair to continue rising to the levels of 1.3783 – 1.4050.
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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