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Main scenario: consider long positions after the completion of the correction above the level of 1.2600 with a target of 1.3000 – 1.3200.
Alternative scenario: breakout and consolidation below the level of 1.2600 will allow the pair to continue declining to the levels of 1.2427 – 1.2332.
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. The first wave of smaller degree 1 of (3) is formed on the H4 chart. The development of the correction as the second wave 2 of (3) was completed and the formation of the third wave 3 of (3) began. Apparently, wave i of 3 was formed on the H1 time frame. If this assumption is correct, the GBPUSD pair will continue to rise to 1.3000 – 1.3200 after the completion of the local correction as wave ii of 3. The level of 1.2600 is critical in this scenario as a breakout will enable the pair to continue declining to the levels of 1.2427 – 1.2332.
Price chart of GBPUSD in real time mode
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