GBP/USD: Wave analysis and forecast for 07/09/2018 – 14/09/2018

The pair GBP/USD is still likely to fall. Estimated pivot point is at a level of 1.3043.

Main scenario: short positions will be relevant from corrections below the level of 1.3043 with a target of 1.2660 – 1.2580.

Alternative scenario: breakout and consolidation above the level of 1.3043 will allow the pair to continue the rise up to the levels of 1.3213 – 1.3364.

Analysis: Supposedly, the first wave of senior level (1) has been formed as an impetus on the daily time frame and a downward correction continues forming as the second wave (2). The wave C of (2), supposedly, is developing on H4 time frame, with the wave v of C forming inside. Apparently, a counter-trend impetus of junior level has formed as the wave (i) of v and the local correction (ii) of v finished forming on H1 time frame. If the presumption is correct, the pair will continue to drop to the levels 1.2660 – 1.2580. The level 1.3043 is critical in this scenario.