GBP/USD: Wave analysis and forecast for 19/10/2018 – 26/10/2018

The pair GBP/USD is still likely to grow. Estimated pivot point is at a level of 1.2658.

Main scenario: long positions will be relevant above the level of 1.2658 with a target of 1.3510 – 1.3708 once the correction has finished.

Alternative scenario: breakout and consolidation below the level of 1.2658 will allow the pair to continue declining to the levels of 1.2334 – 1.2097.

Analysis: Supposedly, the first wave of senior level (1) has been formed as an impetus on the daily time frame and a downward correction finished forming as the second wave (2). Supposedly, the first counter-trend wave of junior level i of 1 of (3) has been formed and a descending correction is developing in the form of wave ii of 1 on the H4 time frame. Apparently, the wave (с) of ii is forming on the H1 time frame. If this assumption is correct, the pair will continue to rise to 1.3510 – 1.3708 once the wave finished forming. The level 1.2658 is critical in this scenario.