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

On the 4-hour chart, a downward correction of the higher level develops as the wave (2), within which the wave C of (2) forms. Now, the fifth wave v of C is developing, within which the local correction (iv) of v has ended. If the assumption is correct, the pair will fall to the levels of 1.1900–1.1800. In this scenario, critical stop loss level is 1.2180.

Main scenario

Short positions will become relevant during the correction, below the level of 1.2180 with the targets at 1.1900–1.1800. Implementation period: 7 days and more.

Alternative scenario

The breakout and the consolidation of the price above the level of 1.2180 will let the pair grow to the levels of 1.2300–1.2366.

Trade

Scenario

Timeframe Weekly
Recommendation SELL
Entry Point 1.2124
Take Profit 1.1900, 1.1800
Stop Loss 1.2180
Key Levels 1.1800, 1.1900, 1.2180, 1.2300, 1.2366

Alternative scenario

Recommendation BUY STOP
Entry Point 1.2185
Take Profit 1.2300, 1.2366
Stop Loss 1.2125
Key Levels 1.1800, 1.1900, 1.2180, 1.2300, 1.2366

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