Main scenario: consider long positions from corrections above the level of 1.2185 with a target of 1.2590 – 1.2723.
Alternative scenario: breakout and consolidation below the level of 1.2185 will allow the pair to continue declining to the levels of 1.2030 – 1.1758.
Analysis: the first wave of larger degree (1) is presumably formed on the daily chart, and a bearish correction started developing as second wave (2). Wave А of (2) is formed on the H4 time frame, and a bullish correction continues unfolding as wave В of (2). Apparently, wave c of B continues developing on the H1 time frame, with wave (v) of c of B forming inside. If this assumption is correct, the pair will continue to rise to 1.2590 – 1.2723. The level of 1.2185 is critical in this scenario as its breakout will enable the pair to continue declining to the levels of 1.2030 – 1.1758.
Price chart of GBPUSD in real time mode
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