GBP/USD: Wave analysis and forecast for 18/01/2019 – 25/01/2019

The pair GBP/USD is still likely to grow. Estimated pivot point is at a level of 1.2665

Main scenario: long positions will be relevant above the level of 1.2665 with a target of 1.3175 – 1.3303.

Alternative scenario: Breakout and consolidation below the level of 1.2665 will allow the pair to continue declining to the levels of 1.2393 – 1.2300.

Analysis: Supposedly, a descending correction of senior level in the form of the second wave (2) finished developing within the daily frame in the form of a zigzag. Supposedly, the wave C of (2) finished developing on the 4-hour time frame in the form of a wedge. Apparently, the wave 3 starts forming on the H1 time-frame, with the wave of junior level (ii) of i of 1 of (3) formed and the wave (iii) of i of 1 developing inside. If the presumption is correct, the pair will continue to rise to the levels 1.3175 – 1.3303. The level 1.2665 is critical in this scenario.