The article covers the following subjects:
Major Takeaways
- Main scenario: Consider short positions from corrections below the level of 1.3387 with a target of 1.2936 – 1.2735. A sell signal: the price holds below 1.3387. Stop Loss: above 1.3425, Take Profit: 1.2936 – 1.2735.
- Alternative scenario: Breakout and consolidation above 1.3387 will allow the pair to continue rising to the levels of 1.3806 – 1.4000. A buy signal: the level of 1.3387 is broken to the upside. Stop Loss: below 1.3350, Take Profit: 1.3806 – 1.4000.
Main scenario
Consider short positions from corrections below the level of 1.3387 with a target of 1.2936 – 1.2735.
Alternative scenario
Breakout and consolidation above the level of 1.3387 will allow the pair to continue rising to the levels of 1.3806 – 1.4000.
Analysis
On the daily timeframe, a downward correction has formed as the second wave 2 of (A). The third wave 3 of (A) is in progress. The first counter-trend wave of smaller degree i of 3 finished forming on the H4 chart, and a bearish correction is now developing as the second wave ii of 3. Wave (с) of ii appears to be unfolding on the H1 chart, with wave iii of (c) developing as its part. If the presumption is correct, GBP/USD will continue to drop to the levels of 1.2936 – 1.2735. The level of 1.3387 is critical in this scenario as a breakout will enable the pair to continue rising to the levels of 1.3806 – 1.4000.
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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