FX:GBPUSD   British Pound / U.S. Dollar
The pair can fall.

On the 4-hour chart, the downward correction of the higher level develops as a wave (2). Locally the wave C of (2) is forming, within which the local correction iv of C has ended, and the development of the wave v of C has begun. If the assumption is correct, the pair will fall to the level of 1.2660. In this scenario, critical stop loss level is 1.2932.

Main scenario

Short positions will become relevant during the correction, below the level of 1.2932 with the target at 1.2660. Implementation period: 5–7 days.

Alternative scenario

The breakout and the consolidation of the price above the level of 1.2932 will let the pair grow to the levels of 1.3213–1.3364.

Trade

Scenario

Timeframe Weekly
Recommendation SELL
Entry Point 1.2867
Take Profit 1.2660
Stop Loss 1.2932
Key Levels 1.2660, 1.2932, 1.3213, 1.3364

Alternative scenario

Recommendation BUY STOP
Entry Point 1.2940
Take Profit 1.3213, 1.3364
Stop Loss 1.2845
Key Levels 1.2660, 1.2932, 1.3213, 1.3364

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