GBP/USD: Wave analysis and forecast for 17/08/2018 – 24/08/2018

Probability of correctional growth for GBP/USD Estimated pivot point is at a level of 1.2661.

Main scenario: long positions will be relevant from corrections above the level of 1.2661 with a target of 1.2870 – 1.2935.

Alternative scenario: Breakout and consolidation below the level of 1.2661 will allow the pair to continue declining to the levels of 1.2580 – 1.2500.

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 the 4H time frame, with the wave iii of C formed inside. Apparently,a local upward correction starts developing in the form of the wave iv of C on the 1H frame. If the presumption is correct, the pair will continue rising to 1.2870 – 1.2935. The level 1.2661 is critical in this scenario.