Main scenario: consider long positions from corrections above the level of 1.3720 with a target of 1.4187 – 1.4253.
Alternative scenario: breakout and consolidation below the level of 1.3720 will allow the pair to continue declining to the levels of 1.3153 – 1.2818.
Analysis: Daily time frame: the first wave of larger degree (1) finished developing, with wave 5 of (1) formed inside. A descending correction appears to have formed as wave (2) on the H4 time frame, with wave C of (2) completed inside. Apparently, the third wave (3) started developing on the H1 time frame, with the first counter-trend wave of smaller degree 1 of (3) forming inside. If the presumption is correct, the pair will continue to rise to the levels of 1.4187 – 1.4253. The level of 1.3720 is critical in this scenario as its breakout will enable the pair to continue declining to the levels of 1.3153 – 1.2818.
Price chart of GBPUSD in real time mode
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