GBPUSD now at 1.5215.
After the top at 1.5605 - check the top at "2" in the daily chart below - the Pound resumed the main downtrend to point 1 (in black). It's now performing a temporary pullback.
DAILY CHART - click the chart to enlarge
After bottoming at 1.5157 the Pound should bounce back to 1.5298, possibly the area 1.5323-1.5328 and theoretically to the area 1.5360-1.5390.
This should be staged with a two-step-pattern upward, meaning 3 waves only. Then the major downtrend would resume.
SHORT TERM TARGETS:
(up) likely: 1.5298
(up) possibly the area 1.5323-1.5328
(up) theoretically the area 1.5360-1.5390
(down) likely: area 1.5073-1.5159
(down): likely: 1.4984
LONG TERM TARGETS (down):
(down) likely: 1.4777
(down) possible: 1.4552
(down) maybe: 1.4345
Long Position: not worth it but if you want to get in, wait for area 1.5187
Short Position. Entry only:
- after reaching the target above mentioned
- the last wave of the two-step-pattern must be performed in 5 waves up
- wait for reversal candlestick at the top
- wait for a confirmation from the "wave oscillator" on your 4-hour chart (see below) before entering your short position.