GBP/USD: wave analysis 02 March 2021, 10:22

GBP/USD: wave analysis

02 March 2021, 10:22

Scenario
Timeframe	Weekly
Recommendation	SELL
Entry Point	1.3890
Take Profit	1.3573, 1.3162
Stop Loss	1.3995
Key Levels	1.3573, 1.3162, 1.4245, 1.4400, 1.4500

Alternative scenario
Recommendation	BUY STOP
Entry Point	1.4250
Take Profit	1.4400, 1.4500
Stop Loss	1.4190
Key Levels	1.3573, 1.3162, 1.4245, 1.4400, 1.4500

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 has started to develop as the wave (2), within which the wave i of A of (2) is forming. If the assumption is correct, the pair will fall to the levels of 1.3573–1.3162. In this scenario, critical stop loss level is 1.4245.

Main scenario

Short positions will become relevant during the correction, below the level of 1.4245 with the targets at 1.3573–1.3162. Implementation period: 7 days and more.

Alternative scenario

The breakout and the consolidation of the price above the level of 1.4245 will let the pair grow to the levels of 1.4400–1.4500.