The price is in a correction and may grow.

On the daily chart, the upward first wave of the higher level (1) formed, and a downward correction started as the second wave (2). Now, the wave A of (2) has ended, within which the fifth wave of the lower level v of A has formed, and an upward correction is developing as the wave B of (2). If the assumption is correct, the GBP/USD pair will grow to the area of 1.2462–1.2591. In this scenario, critical stop loss level is 1.2039.

Main scenario

Long positions will become relevant above the level of 1.2039 with the targets at 1.2462–1.2591. Implementation period: 7 days and more.

Alternative scenario

A breakout and the consolidation of the price below the level of 1.2039 will let the asset go down to the area of 1.1742–1.1410.