The British pound was corrected against the US dollar by 1.2100. Is this a simple downturn or is it the beginning of an upward trend?
The downward trend started from the peak level of 1.2635, which in our wave count was the downward trend in the main path 3, which decreased after passing the important support of 1.2280, the price to double support by the level of 1.2111 and the lower line of the downward channel.
(Details of the wave count are shown in the Chart)
This was followed by a correction, which is currently testing the important level of 1.2280, and on the other hand, the downward trend line for the price in the role of double resistance, which increases the probability that our microwave 4 is in this area.
Scenario 1: If this resistance is pierced, buyers can move the price to 1.2466 and close to 1.26 in the second step.
Scenario 2: If it fails to break this resistance, our target will be 1.942, which will be the end of our main wave 3 and microwave 5.
The downward trend started from the peak level of 1.2635, which in our wave count was the downward trend in the main path 3, which decreased after passing the important support of 1.2280, the price to double support by the level of 1.2111 and the lower line of the downward channel.
(Details of the wave count are shown in the Chart)
This was followed by a correction, which is currently testing the important level of 1.2280, and on the other hand, the downward trend line for the price in the role of double resistance, which increases the probability that our microwave 4 is in this area.
Scenario 1: If this resistance is pierced, buyers can move the price to 1.2466 and close to 1.26 in the second step.
Scenario 2: If it fails to break this resistance, our target will be 1.942, which will be the end of our main wave 3 and microwave 5.
