GBP/USD Wave analysis and forecast for 19.01 – 26.01

Estimated pivot point is at a level of 1.3804

Main scenario: long positions will be relevant from corrections above the level of 1.3804 with a target of 1.4000.

Alternative scenario: Breakout and consolidation below the level of 1.3804 will allow the pair to continue declining to the levels of 1.3650 – 1.3568.

Analysis: The fifth wave 5 of (1) of senior level is supposed to continue forming within the 4-hour time frame. Apparently, the wave v of 5 of junior level is forming locally, with the wave (v) of v developing inside. If this assumption is correct, the pair will go on growing to the level of 1.4000. The level 1.3804 is critical in this scenario.