Growth is possible.

On the daily chart, the third wave of the higher level (3) forms, within which the third wave of the lower level 3 of (3) develops. Now, the wave i of 3 has formed, a correction has ended as the wave ii of 3, and the wave iii of 3 is developing, within which a correction has ended as the wave (ii) of iii. If the assumption is correct, the GBP/USD pair will grow within the wave (iii) of iii to the area of 1.3600–1.4200. In this scenario, critical stop loss level is 1.2992.

Main scenario

Long positions will become relevant above the level of 1.2992 with the targets at 1.3600–1.4200. Implementation period: 7 days and more.

Alternative scenario

A breakout and the consolidation of the price below the level of 1.2992 will let the asset go down to the area of 1.2820–1.2674.