A fall is possible.

On the daily chart, the upward first wave of the higher level (1) formed, and a downward correction develops as the second wave (2). Now, the wave C of (2) is developing, within which the first wave of the lower level i of C has formed, a local correction has ended as the second wave ii of C and the third wave iii of C has started. 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 1.2890.

Main scenario

Short positions will become relevant below the level of 1.2890 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 1.2890 will let the asset grow to the area of 1.3155–1.3470.