GBP/USD: Wave analysis and forecast for 10/05/19 – 17/05/19

The pair GBP/USD is still likely to grow. Estimated pivot point is at a level of 1.2867.

Main scenario: long positions will be relevant from corrections above the level of 1.2867 with a target of 1.3271 – 1.3377.

Alternative scenario: breakout and consolidation below a level of 1.2867 will allow the pair to continue declining to a level of 1.2773 and further below.

Analysis: Supposedly, a descending correction of senior level as of the second wave (2) finished developing on the daily frame in the form of a zigzag and the wave (3) started developing. On the H4 time frame, supposedly, the first counter-trend wave 1 of (3) has been formed as a wedge and a descending correction of junior level 2 of (3) has completed. Apparently, the first counter-trend wave (i) of i of 1 has formed on the H1 time frame, and the local correction (ii) of I is finishing. If this assumption is correct, the pair will continue to rise to 1.3271 – 1.3377. The level 1.2867 is critical in this scenario.