A fall is possible.

On the daily chart, the upward first wave of the higher level (1) formed, and a downward correction developed as the second wave (2). Now, the wave B of (2) has ended, and the wave C of (2) is developing, within which the third wave of the lower level iii of C is forming. If the assumption is correct, the GBP/USD pair will fall to the area of 1.2077–1.1742. In this scenario, critical stop loss level is 1.2491.

Main scenario

Short positions will become relevant below the level of 1.2491 with the targets at 1.2077–1.1742. Implementation period: 7 days and more.

Alternative scenario

A breakout and the consolidation of the price above the level of 1.2491 will let the asset grow to the area of 1.2715–1.2894.