GBP/USD: Wave analysis and forecast for 14/12/2018 – 21/12/2018

The pair GBP/USD is still likely to fall. Estimated pivot point is at a level of 1.2763.

Main scenario: short positions will be relevant below the level of 1.2763 with a target of 1.2475 – 1.2412.

Alternative scenario: breakout and consolidation above the level of 1.2763 will allow the pair to continue the rise up to the levels of 1.2932 – 1.3175.

Analysis: Supposedly, a descending correction of senior level in the form of the second wave (2) continues to develop within the daily frame. A wave C of (2), supposedly, continues developing on the 4H time frame in the form of a wedge, with the fifth wave v of C formed inside. Apparently, a local correction of junior level (iv) of v of C finished developing on the 1H frame. If the presumption is correct, the pair will logically continue falling to 1.2475 – 1.2412. The level 1.2763 is critical in this scenario.