Main scenario: consider short positions from corrections below the level of 1.2681 with a target of 1.2240 – 1.2137.
Alternative scenario: breakout and consolidation above the level of 1.2681 will allow the pair to continue rising to the levels of 1.2860 – 1.3050.
Analysis: the fifth wave of larger degree V presumably finished developing on the daily chart, with wave 5 of V formed as its part. A bearish correction finished developing as the second wave (2) on the H4 chart, and the third wave (3) started unfolding, with the first wave of smaller degree 1 of (3) formed as its part. A descending correction appears to be forming as the second wave 2 of (3) on the H1 chart, with wave a of 2 continuing forming as its part. If the presumption is correct, the pair will continue to drop to the levels of 1.2240 – 1.2137. The level of 1.2681 is critical in this scenario as a breakout will enable the pair to continue rising to the levels of 1.2860 – 1.3050.
Price chart of GBPUSD in real time mode
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