GBP/USD: wave analysis

The pair is in a correction, a fall is possible.

On the 4-hour chart, a downward correction of the higher level developed as the wave (2), and the formation of the third wave (3) started. Now, the first wave of the lower level 1 of (3) is forming, within which the third wave of the lower level iii of 1 has formed, and a downward correction is developing as the wave iv of 1. If the assumption is correct, the pair will fall to the levels of 1.2700–1.2606. In this scenario, critical stop loss level is 1.3012.

Main scenario

Short positions will become relevant during the correction, below the level of 1.3012 with the targets at 1.2700–1.2606. Implementation period: 5–7 days.

Alternative scenario

The breakout and the consolidation of the price above the level of 1.3012 will let the pair grow to the levels of 1.3167–1.3387.

Scenario

Timeframe Weekly
Recommendation SELL
Entry Point 1.2956
Take Profit 1.2700, 1.2606
Stop Loss 1.3012
Key Levels 1.2606, 1.2700, 1.3012, 1.3167, 1.3387

Alternative scenario

Recommendation BUY STOP
Entry Point 1.3015
Take Profit 1.3167, 1.3387
Stop Loss 1.2955
Key Levels 1.2606, 1.2700, 1.3012, 1.3167, 1.3387