GBP/USD: wave analysis 22 February 2021, 09:37

GBP/USD: wave analysis

22 February 2021, 09:37

Scenario
Timeframe	Weekly
Recommendation	BUY
Entry Point	1.4020
Take Profit	1.4100, 1.4200
Stop Loss	1.3822
Key Levels	1.3207, 1.3562, 1.3822, 1.4100, 1.4200

Alternative scenario
Recommendation	SELL STOP
Entry Point	1.3820
Take Profit	1.3562, 1.3207
Stop Loss	1.3910
Key Levels	1.3207, 1.3562, 1.3822, 1.4100, 1.4200

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, within which the wave (iii) of v is forming. If the assumption is correct, the pair will grow to the levels of 1.4100–1.4200. In this scenario, critical stop loss level is 1.3822.

Main scenario

Long positions will become relevant during the correction, above the level of 1.3822 with the targets at 1.4100–1.4200. Implementation period: 7 days and more.

Alternative scenario

The breakdown and the consolidation of the price below the level of 1.3822 will let the pair go down to the levels of 1.3562–1.3207.