GBP/USD: wave analysis

The pair may grow.

On the 4-hour chart, the first wave 1 within the started third wave (3) of the higher level develops. Now, a downward correction has ended as the wave iv of 1, and the fifth wave v of 1 is developing, within which the third wave of the lower level (iii) of v is forming. If the assumption is correct, the pair will grow to the levels of 1.3200–1.3387. In this scenario, critical stop loss level is 1.2979.

Main scenario

Long positions will become relevant during the correction, above the level of 1.2979 with the targets at 1.3200–1.3387. Implementation period: 7 days and more.

Alternative scenario

The breakout and the consolidation of the price below the level of 1.2979 will let the pair go down to the levels of 1.2819–1.2700.

Scenario

Timeframe Weekly
Recommendation BUY
Entry Point 1.3133
Take Profit 1.3200, 1.3387
Stop Loss 1.3075
Key Levels 1.2700, 1.2819, 1.2979, 1.3200, 1.3387

Alternative scenario

Recommendation SELL STOP
Entry Point 1.2970
Take Profit 1.2819, 1.2700
Stop Loss 1.3030
Key Levels 1.2700, 1.2819, 1.2979, 1.3200, 1.3387