Main scenario: consider long positions from corrections above the level of 1.2441 with a target of 1.2910 – 1.3155.
Alternative scenario: breakout and consolidation below the level of 1.2441 will allow the pair to continue declining to the levels of 1.2294 – 1.2033.
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, a descending correction is completed as second wave 2 of (3), and wave 3 of (3) started developing. Apparently, the first wave of smaller degree i of 3 is forming on the H1 time frame, with wave (iii) of i of 3 formed and a local corrective wave (iv) of i of 3 developing as its parts. If the presumption is correct, the GBPUSD will continue to rise to the levels of 1.2910 – 1.3155 upon correction. The level of 1.2441 is critical in this scenario as its breakout will enable the pair to continue declining to the levels of 1.2294 – 1.2033.
Price chart of GBPUSD in real time mode
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