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Main scenario: consider long positions from corrections above the level of 1.2534 with a target of 1.3000 – 1.3200.
Alternative scenario: breakout and consolidation below the level of 1.2534 will allow the pair to continue declining to the levels of 1.2427 – 1.2333.
Analysis: the first wave of larger degree (1) is presumably formed, a correction developed as second wave (2), and the ascending third wave (3) started unfolding on the daily chart. On the H4 chart, wave 1 of (3) is formed, and a descending correction finished developing as second wave 2 of (3). Apparently, the third wave 3 of (3) started developing on the H1 chart, with counter-trend wave of smaller degree (i) of i of 3 formed as its part. If the presumption is correct, the GBPUSD pair will continue to rise to 1.3000 – 1.3200 once a local correction finishes developing as wave (ii) of i of 3. The level of 1.2534 is critical in this scenario as its breakout will enable the pair to continue declining to the levels of 1.2427 – 1.2333.
Price chart of GBPUSD in real time mode
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