GBP/USD, Daily:
Consider the situation for the GBP/USD currency pair.
It is assumed that the market is forming a global triple zigzag, in which the second wave of the bundle [X] has come to an end. The structure of which is presented on the daily time frame. The wave of the bundle [X] took the form of an upward double zigzag, consisting of sub-waves (W)-(X)-(Y).
Thus, we are currently in the early part of a new bearish wave. Let's take a closer look at the markup of the last section of the chart on a smaller time frame.
GBP/USD, H4:
We see that at the end of February 2021, a downward trend began to form in the currency pair. Most likely, the market is forming an impulse wave, which will consist of five sub-waves [1]-[2]-[3]-[4]-[5].
At the time of writing this article, the first part, the sub-wave [1], which took the form of a simple bearish impulse, has been fully completed. Then the price began to move upward in the corrective wave [2].
Wave [2] is expected to be small in size and may complete its pattern near the level of 1.4056. At this level, the correction [2] will be 61.8% along the Fibonacci lines from the impulse [1]. After that, market participants are waiting for the continuation of the decline in the currency pair within the third wave, as shown in the chart.
In the current situation, one can consider opening long positions in order to take profit at the level of 1.4046.
