GBP/USD: Elliott wave analysis and forecast for 16/08/2019 – 23/08/2019

The pair GBP/USD is still likely to fall Estimated pivot point is at a level of 1.2211.

Main scenario: short positions will be relevant from corrections below the level of 1.2211 with a target of 1.1900 – 1.1800.

Alternative scenario: breakout and consolidation above the level of 1.2211 will allow the pair to continue the rise up to the levels of 1.2360 – 1.2554.

Analysis: Supposedly, a descending correction of senior level carries on developing  in the form of the zigzag-shaped second wave (2) on the D1 frame. A bearish impulse is developing as wave С of (2) on the H4 time frame, with wave v of C forming inside. Apparently, the third wave of junior level (iii) of v finished developing as an impulse on the H1 time frame and local correction  (iv) of v is forming at the moment. If the presumption is correct, the pair will continue to drop to the levels of 1.1900 – 1.1800. The level 1.2211 is critical in this scenario.