GBP/USD May Plummet to 1.30 Levels as Elliott Wave Theory Predicts

The GBP/USD currency pair is expected to decline according to an analysis based on the Elliott Wave Theory. The main scenario suggests short positions from corrections below the level of 1.3556 with a target of 1.3050-1.2936. A sell signal will be triggered if the price holds below 1.3556, with a stop loss above 1.3600 and take profit at 1.3050-1.2936.

The alternative scenario suggests that breakout and consolidation above the level of 1.3556 will allow the pair to continue rising to the levels of 1.3870-1.4140. A buy signal will be triggered if the level of 1.3556 is broken to the upside, with a stop loss below 1.3515 and take profit at 1.3870-1.4140.

According to the analysis, on the weekly time frame, an ascending wave (A) of B of larger degree is developing. Within it, wave 1 of (A) has formed, and downward correction 2 of (A) has ended. On the daily chart, wave 3 of (A) is unfolding, with wave i of 3 having formed and bearish correction ii of 3 continuing to develop.