GBP/USD: Wave analysis and forecast for 05/10/2018 – 12/10/2018

The pair GBP/USD is still likely to grow. Estimated pivot point is at a level of 1.2920.

Main scenario: long positions will be relevant from corrections above the level of 1.2920 with a target of 1.3295 – 1.3474.

Alternative scenario: breakout and consolidation below the level of 1.2920 will allow the pair to continue declining to a level of 1.2654.

Analysis: Supposedly, the first wave of senior level (1) has been formed as an impetus on the daily time frame and a downward correction finished forming as the second wave (2). Supposedly, the first counter-trend wave of junior level i of 1 of (3) is forming on H4 time frame. On H1 time frame, the third wave (iii) of i has been formed and a downward correction (iv) of i is completed. If the presumption is correct, the pair will continue to rise to the levels 1.3295 – 1.3474. The level 1.2920 is critical in this scenario.