GBP/USD, H4:
Analysis of GBP/USD indicates the end of a large bullish trend, consisting of a combination of zig zags [W]-[X]-[Y]. There has been a strong upward impuls wave pattern (C) by the end of the trend. Then, the pair reversed downward and formed sub-waves [1] and [2]. Let's take a closer look at the wave structure on the H1 chart.
GBP/USD, H1:
Wave [1] is a completed bearish impulse wave pattern, which includes sub-waves (1)-(2)-(3)-(4)-(5). Wave [2] includes sub-waves (W)-(X)-(Y).
After the completion of Wave [2], a new downward trend started. Most likely, Wave (1), marked with a blue number, is now forming. When the wave is completed in the area of 1.379, a correction (2) to 1.391 will become possible. At this price level, the length of the corrective wave (2) is the 61.8% Fibo retracement in comparison with the bearish impuls wave pattern (1), which is typical for second waves.
In the short term, you can search for entry points to open long positions so that the price can rise inside the corrective wave (2).
