The price is in a correction and may grow.

On the daily chart, the upward first wave of the higher level (1) formed, a downward correction ended as the second wave (2), and the third wave (3) forms. Now, the third wave of the lower level 3 of (3) is developing, within which the wave i of 3 has formed, and a local correction is developing as the wave ii of 3, within which the wave (c) of ii is forming. If the assumption is correct, the GBP/USD pair will grow to the area of 1.3155–1.3470. In this scenario, critical stop loss level is 1.2300.

Main scenario

Long positions will become relevant above the level of 1.2300 with the targets at 1.3155–1.3470. Implementation period: 7 days and more.

Alternative scenario

A breakout and the consolidation of the price below the level of 1.2300 will let the asset go down to the area of 1.2077–1.1742.