Elliott waves analysis – GBP/USD. The pound risks losing its chance for significant strengthening.

The British pound hesitated in its strength, abruptly pausing its activity and giving opponents a chance to regroup and attempt to rectify the situation. While nothing serious has happened yet for the scenario under consideration, there is a certain threat looming. The price retreated, and if this movement is not stopped, sellers may gain confidence and push the price below the local minimum.

This alternative scenario remains for now, with the main scenario being the upward impulse movement driven by the formation of wave [v] of the upward impulse. Today’s trading day may clarify this situation by confirming or refuting the wave analysis.

A breakout above the level of 1.2630 would signal active buying.