GBP/USD: wave analysis

The pair may fall within the correction.

On the 4-hour chart, the development of the third wave (3) of the higher level started, within which the first wave of the lower level 1 of (3) formed. Now, a downward correction has started to develop as the wave 2 of (3). If the assumption is correct, the pair will fall to the levels of 1.2735–1.2546. In this scenario, critical stop loss level is 1.3513.

Main scenario

Short positions will become relevant during the correction, below the level of 1.3513 with the targets at 1.2735–1.2546. Implementation period: 7 days and more.

Alternative scenario

The breakout and the consolidation of the price above the level of 1.3513 will let the pair grow to the levels of 1.3650–1.3800.

Scenario

Timeframe Weekly
Recommendation SELL
Entry Point 1.3100
Take Profit 1.2735, 1.2546
Stop Loss 1.3225
Key Levels 1.2546, 1.2735, 1.3513, 1.3650, 1.3800

Alternative scenario

Recommendation BUY STOP
Entry Point 1.3515
Take Profit 1.3650, 1.3800
Stop Loss 1.3455
Key Levels 1.2546, 1.2735, 1.3513, 1.3650, 1.3800