Growth is possible.

On the daily chart, the upward first wave of the higher level (1) ended, a downward correction formed as the second wave (2), and the third wave (3) develops. Now, the third wave of the lower level 3 of (3) is developing, within which the wave iii of 3 is forming. If the assumption is correct, after the end of the local correction as the wave iv of 3, the GBP/USD pair will grow to the area of 1.3198–1.3754. In this scenario, critical stop loss level is 1.2855.

Main scenario

Long positions will become relevant above the level of 1.2855 with the targets at 1.3198–1.3754. Implementation period: 7 days and more.

Alternative scenario

A breakout and the consolidation of the price below the level of 1.2855 will let the asset go down to the area of 1.2585–1.2360.