GBP/USD: Wave analysis and forecast for 24/08/2018 – 31/08/2018

The pair GBP/USD is still likely to fall. Estimated pivot point is at a level of 1.2932.

Main scenario: short positions will be relevant from corrections below the level of 1.2932 with a target of 1.2660 – 1.2580.

Alternative scenario: breakout and consolidation above the level of 1.2932 will allow the pair to continue the rise up to the levels of 1.3213 – 1.3364.

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). Supposedly, the wave C of (2) continues developing on the 4-hour time frame. Apparently, a local upward correction in the form of wave iv of C is completed and the wave v of C starts developing on the 1H time frame. If the presumption is correct, the pair will resume falling to the levels of 1.2660 – 1.2580. The level 1.2932 is critical in this scenario.