GBP/USD: wave analysis 08 February 2021, 07:58

GBP/USD: wave analysis

08 February 2021, 07:58

Scenario
Timeframe	Weekly
Recommendation	SELL
Entry Point	1.3731
Take Profit	1.3207, 1.2861
Stop Loss	1.3880
Key Levels	1.2861, 1.3207, 1.3756, 1.3900, 1.4000

Alternative scenario
Recommendation	BUY STOP
Entry Point	1.3760
Take Profit	1.3900, 1.4000
Stop Loss	1.3700
Key Levels	1.2861, 1.3207, 1.3756, 1.3900, 1.4000

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, the fifth wave of the lower level v of 5 of (1) has developed as a wedge, and a downward correction has started to develop as the wave (2). If the assumption is correct, the pair will fall to the levels of 1.3207–1.2861. In this scenario, critical stop loss level is 1.3756.

Main scenario

Short positions will become relevant during the correction, below the level of 1.3756 with the targets at 1.3207–1.2861. Implementation period: 7 days and more.

Alternative scenario

The breakout and the consolidation of the price above the level of 1.3756 will let the pair grow to the levels of 1.3900–1.4000.