The article covers the following subjects:
Major Takeaways
- Main scenario: Consider short positions from corrections below the level of 1.2800 with a target of 1.2240 – 1.1900. A sell signal: the price holds below 1.2800. Stop Loss: above 1.2830, Take Profit: 1.2240 – 1.1900.
- Alternative scenario: Breakout and consolidation above the level of 1.2800 will allow the pair to continue rising to the levels of 1.3054 – 1.3440. A buy signal: the level of 1.2800 is broken to the upside. Stop Loss: below 1.2770, Take Profit: 1.3054 – 1.3440.
Main Scenario
Consider short positions from corrections below the level of 1.2800 with a target of 1.2240 – 1.1900.
Alternative Scenario
Breakout and consolidation above the level of 1.2800 will allow the pair to continue rising to the levels of 1.3054 – 1.3440.
Analysis
An ascending first wave of larger degree 1 of (A) is presumably formed on the daily chart, and a downside correction is unfolding as the second wave 2 of (А). Wave а of 2 is developing on the H4 chart, with a local correction presumably completed as the fourth wave of smaller degree (iv) of a inside. Apparently, the fifth wave (v) of a has started developing on the H1 time frame. If this assumption is correct, the GBP/USD pair will continue to fall to 1.2240 – 1.1900. The level of 1.2800 is critical in this scenario as a breakout will enable the pair to continue rising to the levels of 1.3054 – 1.3440.
Price chart of GBPUSD in real time mode
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