The article covers the following subjects:
Major Takeaways
- Main scenario: Consider long positions from corrections above the level of 1.3130 with a target of 1.3800 – 1.4000. A buy signal: the price holds above 1.3130. Stop Loss: below 1.3050, Take Profit: 1.3800 – 1.4000.
- Alternative scenario: Breakout and consolidation below the level of 1.3130 will allow the pair to continue declining to the levels of 1.2926 – 1.2700. A sell signal: the level of 1.3130 is broken to the downside. Stop Loss: above 1.3200, Take Profit: 1.2926 – 1.2700.
Main Scenario
Consider long positions from corrections above the level of 1.3130 with a target of 1.3800 – 1.4000.
Alternative Scenario
Breakout and consolidation below the level of 1.3130 will allow the pair to continue declining to the levels of 1.2926 – 1.2700.
Analysis
On the daily time frame, the ascending first wave of larger degree 1 of (A) has formed, followed by a downward correction 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 continues developing on the H4 chart, with wave (iii) of i forming as its part. On the H1 chart, apparently, wave iii of (iii) is formed, and a local correction is nearing completion as wave iv of (iii). If the presumption is correct, the GBP/USD pair will continue to rise to the levels of 1.3800 – 1.4000 after the correction ends. The level of 1.3130 is critical in this scenario as a breakout will enable the pair to continue declining to the levels of 1.2926 – 1.2700.
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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