GBP/USD forecast

   At H4 graph the market is in sideways trading pattern. After drop below level 1.6465, the pair gained opportunity to retreat to level 1.6265 (the lower bound of the “C-C+” daily sideways trend), right where it is going to now. As long as the market stays above that level (that is, within daily sideways trend), the sideways trend at H4 graph continues.
Taking above into consideration, as an alternative, in case the pair rises above level 1.6465, it will get to level 1.6580 (“P+” trend line).

 

 

 

   The pair rebounded from level 1.6900 (“F” trend line, see monthly graph) and went below support level 1.6820, which speaks about a need of dropping to support level 1.6550 (the lower bound of “B-B+” daily uptrend). In general, such events progression speaks about dropping to support level 1.6200 straight away (the lower bound of “C-C+” sideways trend). The market must get under level 1.6550 to confirm this scenario.

   Leaving the “E-E+” and “B-B+” uptrends speaks about the pair’s will to get under the lower bound of “D-D+” weekly uptrend (below level 1.6000) and to reach the target level at 1.5430. But due to a very strong support at level 1.6200 on the side of the “C-C+” trend’s lower bound, we should wait until the pair goes below level 1.6100 and confirm that intention. This will also be a signal of “D-D+” weekly uptrend’s turn and of replacing it with a downtrend.

   1.5430 is supposed to be the target level of the first down-trending wave. Next, a correction is possible towards resistance 1.6200 (“H” trend line and the crossing of “C” and “D” trend lines). The target of drop for the last wave will be set to 1.4355.

 

 

   After getting over level 1.5300 (breaking the “Y-Y+” trend’s higher bound) the pair had set its target of growth to resistance level 1.6900 (“F” trend line). This level is meant to be reached in the course of “D-D+” uptrend. Upon reaching it, an intermediate resistance – level 1.6200 (“H” trend line and levels of Japanese candles) – will appear on the pair’s way. Due to the fact that 1.6200 is an important resistance, a correction is meant to follow from there and end up at support level 1.5300. Uptrend within the “D-D+” channel will be resumed from the same level and the pair will reach the target 1.6900. “D-D+” trend is completed in five waves.

 

 

   Bounce off level 1.3900 (“R” trend line) had provoked a rapid growth of the pair. The peak of growth is meant to be found at level 1.6900 (“F” trend line). Upon reaching this level there will be two variants of events to develop: