The article covers the following subjects:
Major Takeaways
- Main scenario: Consider short positions from corrections below the level of 1.2664 with a target of 1.2240 – 1.1900. A sell signal: the price holds below 1.2664. Stop Loss: above 1.2690, Take Profit: 1.2240 – 1.1900.
- Alternative scenario: Breakout and consolidation above the level of 1.2664 will allow the pair to continue rising to the levels of 1.3054 – 1.3440. A buy signal: the level of 1.2664 is broken to the upside. Stop Loss: below 1.2630, Take Profit: 1.3054 – 1.3440.
Main Scenario
Consider short positions from corrections below the level of 1.2664 with a target of 1.2240 – 1.1900.
Alternative Scenario
Breakout and consolidation above the level of 1.2664 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 completed as the fourth wave of smaller degree (iv) of a inside. Apparently, the fifth wave (v) of a is forming on the H1 chart, with wave iii of (v) continuing to develop as its part. If the presumption is correct, GBP/USD will continue to drop to the levels of 1.2240 – 1.1900. The level of 1.2664 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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