GBP/USD: wave analysis

The probability of the pair reducing remains.

On the daily chart, the downward correction of the higher level continues to develop as a wave (2), which includes the formation of the wave C of (2). At the moment, a local correction of the lower level ii of C is formed, and if the assumption is correct, then it is logical to expect a decline in the pair to 1.2300–1.2150. The level of 1.2810 is critical and stop loss for this scenario.

Main scenario

Short positions are relevant from the corrections below level of 1.2810 with the targets at 1.2300–1.2150. Implementation time: 7 days and more.

Alternative scenario

The breakout and the consolidation of the price above the level of 1.2810 will let the pair grow to the level of 1.3175.

Scenario

Timeframe Weekly
Recommendation SELL
Entry Point 1.2551
Take Profit 1.2300, 1.2150
Stop Loss 1.2635
Key Levels 1.2150, 1.2300, 1.2810, 1.3175

Alternative scenario

Recommendation BUY STOP
Entry Point 1.2815
Take Profit 1.3175
Stop Loss 1.2695
Key Levels 1.2150, 1.2300, 1.2810, 1.3175