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Main scenario: consider long positions above the level of 1.2426 with a target of 1.3000 – 1.3200 once a correction is formed.
Alternative scenario: breakout and consolidation below the level of 1.2426 will allow the pair to continue declining to the levels of 1.2333 – 1.2220.
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 is nearing completion as second wave 2 of (3). Apparently, wave с of 2 is nearing completion on the H1 time frame. Upon its completion, if this assumption is correct, the GBPUSD pair will continue to rise to 1.3000 – 1.3200. The level of 1.2426 is critical in this scenario as its breakout will allow the pair to continue declining to the levels of 1.2333 – 1.2220.
Price chart of GBPUSD in real time mode
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