GBP/USD Wave analysis and forecast for 13.01 – 20.01

GBP/USD Wave analysis and forecast for 13.01 – 20.01: Downtrend continues.

Estimated pivot point is at the level of 1.2313.

Our opinion: Sell the pair from correction below the level of 1.2313 with the target of 1.1185.

Alternative scenario: Breakout and consolidation of the price above the level of 1.2313 will trigger further rise in the pair to 1.2433.

Analysis: Presumably, the formation of the fifth wave of the senior level continues. Locally, it is likely that the third wave of the junior level iii of 5 is being developed, within which the wave (ii) has completed. If this assumption is correct, the pair may continue to decline to 1.1885. Critical level for this scenario is 1.2313.