GBP/USD: Wave analysis and forecast for 10/08/2018 – 17/08/2018

Descending trend for the pair GBP/USD continues. Estimated pivot point is at a level of 1.2914.

Main scenario: short positions will be relevant from corrections below the level of 1.2914 with a target of 1.2650 – 1.2580.

Alternative scenario: breakout and consolidation above the level of 1.2914 will allow the pair to continue the rise up to the levels of 1.3059 – 1.3171.

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). A wave C of (2), supposedly, is developing on the 4H time frame, with the wave iii of C forming inside. Apparently, the third wave of junior level (iii) of iii of C is nearing completion on the 1H frame. If the presumption is correct, the pair will continue falling to 1.2650 – 1.2580 once the local correction (iv) of iii has finished. The level 1.2914 is critical in this scenario.