Main scenario: consider short positions from corrections below the level of 1.3830 with a target of 1.3400 – 1.3157.
Alternative scenario: breakout and consolidation above the level of 1.3830 will allow the pair to continue rising to the levels of 1.3982 – 1.4243.
Analysis: the first wave of larger degree (1) formed on the daily chart, and a downside correction continues forming as wave (2). Wave B of (2) appears to have finished developing on the H4 chart. Wave С of (2) is forming at the moment, with the third wave of smaller degree iii of C unfolding as part of it. Apparently, wave (iii) of iii developed on the H1 chart, and a local correction formed as wave (iv) of iii. If the presumption is correct, the pair will continue to drop to the levels of 1.3400 – 1.3157. The level of 1.3830 is critical in this scenario as a breakout will enable the pair to continue rising to the levels of 1.3982 – 1.4243.
Price chart of GBPUSD in real time mode
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