GBP/USD Set for Rise to 1.3870-1.4140, Breakout Below 1.3274 Spells Decline

The analysis of GBP/USD's Elliott Wave Theory suggests that the currency pair will continue to rise in the upcoming week, from August 7th to August 14th. The main scenario indicates a long position with a target of 1.3870-1.4140, provided the price holds above 1.3274.

The weekly time frame shows an ascending wave of larger degree (A) developing, within which wave 1 of (A) has formed and a downward correction 2 of (A) has been completed. On the daily time frame, wave 3 of (А) is unfolding, with the third wave iii of 3 forming and a local correction (ii) of iii having been completed.

The H4 chart shows wave (iii) of iii unfolding as its part, with wave iii of (iii) in progress. If this presumption is correct, GBP/USD will continue to rise to 1.3870-1.4140. The level of 1.3274 is critical in this scenario, as a breakout below it would enable the pair to decline to the levels of 1.3140-1.2936.