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 wave iii of C is developing as a momentum. If the assumption is correct, the pair will fall to the levels of 1.2700–1.2580. The level of 1.2914 is critical and stop loss for this scenario.

Main scenario

Short positions will become relevant during the correction, below the level of 1.2914 with the targets at 1.2700–1.2580. Implementation period: 7 days and more.

Alternative scenario

The breakout and the consolidation of the price above the level of 1.2914 will let the pair grow to the levels of 1.3059–1.3171.

Trade

Scenario

Timeframe Weekly
Recommendation SELL
Entry Point 1.2795
Take Profit 1.2700, 1.2580
Stop Loss 1.2914
Key Levels 1.2580, 1.2700, 1.2914, 1.3059, 1.3171.

Alternative scenario

Recommendation BUY STOP
Entry Point 1.2920
Take Profit 1.3059, 1.3171
Stop Loss 1.2870
Key Levels 1.2580, 1.2700, 1.2914, 1.3059, 1.3171.

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