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 of the lower level iii of C is developing as a momentum. If the assumption is correct, the pair will fall to the level of 1.2580. The level of 1.2830 is critical and stop loss for this scenario.

Main scenario

Short positions will become relevant during the correction, below the level of 1.2830 with the target at 1.2580. Implementation period: 5–7 days.

Alternative scenario

The breakout and the consolidation of the price above the level of 1.2830 will let the pair grow to the levels of 1.3059–1.3171.

Trade

Scenario

Timeframe Weekly
Recommendation SELL
Entry Point 1.2715
Take Profit 1.2580
Stop Loss 1.2830
Key Levels 1.2580, 1.2830, 1.3059, 1.3171

Alternative scenario

Recommendation BUY STOP
Entry Point 1.2840
Take Profit 1.3059, 1.3171
Stop Loss 1.2770
Key Levels 1.2580, 1.2830, 1.3059, 1.3171

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