GBP/USD: wave analysis 08 March 2021, 12:05

GBP/USD: wave analysis

08 March 2021, 12:05

Scenario
Timeframe	Weekly
Recommendation	SELL
Entry Point	1.3830
Take Profit	1.3573, 1.3162
Stop Loss	1.4022
Key Levels	1.3162, 1.3573, 1.4022, 1.4246, 1.4400

Alternative scenario
Recommendation	BUY STOP
Entry Point	1.4025
Take Profit	1.4246, 1.4400
Stop Loss	1.3950
Key Levels	1.3162, 1.3573, 1.4022, 1.4246, 1.4400

The probability of the pair reduction remains.

On the daily chart, the development of the first wave of the higher level (1) has completed, which included wave 5 of (1). At the moment, the development of a downward correction has begun as wave (2), which includes the formation of wave A of (2). If the assumption is correct, the decline of the pair will continue to the levels of 1.3573–1.3162. The level of 1.4022 is critical and stop-loss for this scenario.

Main scenario

Short positions are relevant from corrections below the level of 1.4022 with targets at 1.3573–1.3162. Implementation time: 7 days and more.

Alternative scenario

Breakout and consolidation of the price above the level of 1.4022 will help the pair continue growth to the levels of 1.4246–1.4400.