FX:GBPUSD   British Pound / U.S. Dollar
The correction ended, the pair may grow.

On the 4-hour chart, the first wave of the higher level 1 of (3) formed as a wedge, and a downward correction developed as the wave 2 of (3). Now, the wave c of 2 has formed, and the development of the third wave 3 of (3) is beginning. If the assumption is correct, the pair will grow to the levels of 1.3178–1.3377. In this scenario, critical stop loss level is 1.2600.

Main scenario

Long positions will become relevant during the correction, above the level of 1.2600 with the targets at 1.3178–1.3377. Implementation period: 7 days and more.

Alternative scenario

The breakout and the consolidation of the price below the level of 1.2600 will let the pair go down to the levels of 1.2398–1.2241.

Scenario

Timeframe Weekly
Recommendation BUY
Entry Point 1.2740
Take Profit 1.3178, 1.3377
Stop Loss 1.2600
Key Levels 1.2241, 1.2398, 1.2600, 1.3178, 1.3377

Alternative scenario

Recommendation SELL STOP
Entry Point 1.2595
Take Profit 1.2398, 1.2241
Stop Loss 1.2660
Key Levels 1.2241, 1.2398, 1.2600, 1.3178, 1.3377

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