Main scenario: consider short positions from corrections below the level of 1.2640 with a target of 1.2086 – 1.1900.
Alternative scenario: breakout and consolidation above the level of 1.2640 will allow the pair to continue rising to the levels of 1.3083 – 1.3288.
Analysis: the first wave of larger degree (1) is formed on the daily chart, and a descending correction continues developing as wave (2). Wave С of (2) is developing on the H4 chart, with the fifth wave v of C forming as its part. On the H1 chart, a local correction appears to have formed as the fourth wave of smaller degree (iv) of v and wave (v) of v of C is unfolding. If the presumption is correct, the pair will continue to drop to the levels of 1.2086 – 1.1900. The level of 1.2640 is critical in this scenario as a breakout will enable the pair to continue rising to the levels of 1.3083 – 1.3288.
Price chart of GBPUSD in real time mode
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