GBP/USD: Elliott wave analysis and forecast for 05.07.24 – 12.07.24

July 5, 2024 12:45 pm

The article covers the following subjects:

Key takeaways

  • Main scenario: consider long positions from a correction above the level of 1.2610 with a target of 1.3145 – 1.3740. A buy signal: after the level of 1.2610 is broken. Stop Loss: 1.2510, Take Profit: 1.3740.
  • Alternative scenario: breakout and consolidation below the level of 1.2610 will allow the pair to continue declining to the levels of 1.2518 – 1.2300. A sell signal: after the level of 1.2610 is broken. Stop Loss: 1.2710, Take Profit: 1.2300.

Main scenario

Consider long positions from a correction above the level of 1.2610 with a target of 1.3145 – 1.3740.

Alternative scenario

Breakout and consolidation below the level of 1.2610 will allow the pair to continue declining to the levels of 1.2518 – 1.2300.

Analysis

An ascending wave of larger degree В is presumably developing on the daily time frame, with the third wave 3 of (A) of B unfolding as its part. A corrective wave ii of 3 is completed, and wave iii of 3 is forming on the H4 time frame. On the H1 chart, apparently, the first wave of smaller degree (i) of iii is formed, a local correction has developed as the second wave (ii) of iii, and the third wave (iii) of iii started unfolding. If the presumption is correct, the GBPUSD pair will continue to rise to the levels of 1.3145 – 1.3740. The level of 1.2610 is critical in this scenario as its breakout will enable the pair to continue declining to the levels of 1.2518 – 1.2300.



Price chart of GBPUSD in real time mode

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