GBP/USD: wave analysis

The pair may grow.

On the daily chart, the first wave 1 develops within the started third wave (3) of the higher level. Now, the fifth wave v of 1 is developing, within which the wave of the lower level (v) of v is forming. If the assumption is correct, the pair will grow to the levels of 1.3650–1.3800. In this scenario, critical stop loss level is 1.3048.

Main scenario

Long positions will become relevant during the correction, above the level of 1.3048 with the targets at 1.3650–1.3800. Implementation period: 7 days and more.

Alternative scenario

The breakout and the consolidation of the price below the level of 1.3048 will let the pair go down to the levels of 1.2819–1.2700.

Scenario

Timeframe Weekly
Recommendation BUY
Entry Point 1.3474
Take Profit 1.3650, 1.3800
Stop Loss 1.3405
Key Levels 1.2700, 1.2819, 1.3048, 1.3650, 1.3800

Alternative scenario

Recommendation SELL STOP
Entry Point 1.3040
Take Profit 1.2819, 1.2700
Stop Loss 1.3115
Key Levels 1.2700, 1.2819, 1.3048, 1.3650, 1.3800