The article covers the following subjects:
Major Takeaways
- Main scenario: Consider long positions from corrections above the level of 1.3207 with a target of 1.3870–1.4300. A buy signal: the price holds above 1.3207. Stop Loss: below 1.3207, Take Profit: 1.3870–1.4300.
- Alternative scenario: Breakout and consolidation below 1.3207 will allow the pair to continue declining to the levels of 1.3000–1.2700. A sell signal: the 1.3207 level is broken to the downside. Stop Loss: above 1.3207, Take Profit: 1.3000–1.2700.
Main Scenario
Consider long positions from corrections above the level of 1.3207 with a target of 1.3870–1.4300.
Alternative Scenario
Breakout and consolidation below 1.3207 will allow the pair to continue declining to the levels of 1.3000–1.2700.
Analysis
On the weekly time frame, an ascending wave of larger degree (A) of B is developing. Within it, wave 1 of (A) has formed, and a downward correction has been completed as wave 2 of (A). The third wave 3 of (A) appears to continue forming on the daily chart, with wave iii of 3 developing as its part. The H4 time frame suggests that wave (i) of iii and the local corrective wave (ii) of iii have been completed, and wave (iii) of iii has started unfolding. If the presumption is correct, GBP/USD will continue to rise to the levels of 1.3870–1.4300. The level of 1.3207 is critical in this scenario as a breakout below it will enable the pair to continue declining to the levels of 1.3000–1.2700.
This forecast is based on the Elliott Wave Theory. When developing trading strategies, it is essential to consider fundamental factors, as the market situation can change at any time.
Price chart of GBPUSD in real time mode
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