Growth is possible.

On the daily chart, the upward first wave of the higher level (1) formed, a downward correction ended as the second wave (2), and the upward third wave (3) develops. Now, a local correction has formed as the second wave of the lower level 2 of (3), and the third wave 3 of (3) has started. If the assumption is correct, the GBP/USD pair will grow to the area of 1.3146–1.3500. In this scenario, critical stop loss level is 1.2598.

Main scenario

Long positions will become relevant above the level of 1.2598 with the targets at 1.3146–1.3500. Implementation period: 7 days and more.

Alternative scenario

A breakout and the consolidation of the price below the level of 1.2598 will let the asset go down to the area of 1.2075–1.1742.