GBP/USD: wave analysis 19 January 2021, 11:34

GBP/USD: wave analysis

19 January 2021, 11:34

Scenario
Timeframe	Weekly
Recommendation	SELL
Entry Point	1.3603
Take Profit	1.3402, 1.3255
Stop Loss	1.3700
Key Levels	1.3255, 1.3402, 1.3700, 1.3800, 1.3900

Alternative scenario
Recommendation	BUY STOP
Entry Point	1.3705
Take Profit	1.3800, 1.3900
Stop Loss	1.3645
Key Levels	1.3255, 1.3402, 1.3700, 1.3800, 1.3900

The pair may fall.

On the daily chart, the first wave of the higher level (1) developed, within which the wave 5 of (1) formed. Now, a downward correction is starting to develop as the wave (2), within which the wave A of (2) is forming. If the assumption is correct, the pair will fall to the levels of 1.3402–1.3255. In this scenario, critical stop loss level is 1.3700.

Main scenario

Short positions will become relevant during the correction, below the level of 1.3700 with the targets at 1.3402–1.3255. Implementation period: 7 days and more.

Alternative scenario

The breakout and the consolidation of the price above the level of 1.3700 will let the pair grow to the levels of 1.3800–1.3900.