GBP/USD: wave analysis 16 February 2021, 09:42

GBP/USD: wave analysis

16 February 2021, 09:42

Scenario
Timeframe	Weekly
Recommendation	BUY
Entry Point	1.3930
Take Profit	1.4000, 1.4100
Stop Loss	1.3900
Key Levels	1.3207, 1.3539, 1.3770, 1.4000, 1.4100

Alternative scenario
Recommendation	SELL STOP
Entry Point	1.3765
Take Profit	1.3539, 1.3207
Stop Loss	1.3840
Key Levels	1.3207, 1.3539, 1.3770, 1.4000, 1.4100

The pair may grow.

On the daily chart, the first wave of the higher level (1) develops, within which the wave 5 of (1) forms. Now, the fifth wave of the lower level v of 5 of (1) is developing. If the assumption is correct, the pair will grow to the levels of 1.4000–1.4100. In this scenario, critical stop loss level is 1.3770.

 

Main scenario

Long positions will become relevant during the correction, above the level of 1.3770 with the targets at 1.4000–1.4100. Implementation period: 7 days and more.

Alternative scenario

The breakdown and the consolidation of the price below the level of 1.3770 will let the pair go down to the levels of 1.3539–1.3207.