GBPUSD is seen to be in a corrective phase since 1.2800 highs and into its last Wave C lower towards 1.1900 levels, going forward. Bears are looking poised to resume lower again after a brief pullback rally towards 1.2575 levels.
GBPUSD larger degree wave counts might be suggesting that an impulse wave is complete between 1.1414 and 1.2800 levels. The currency pair seems to have carved a meaningful bottom around 1.1414 earlier and potentially terminated 5 waves rally towards 1.2800/10 levels.
After an impulse wave is complete, we can expect a corrective wave in the opposite direction. In simple terms, GBPUSD needs to produce a retracement lower, after completing the rally between 1.1414 and 1.2800 levels respectively.
Let us look at the structure since 1.2800 again. The drop from 1.2800 through 1.2250 was clearly in 5 waves, not an impulse through. This confirms the drop is incomplete and GBPUSD needs to print below 1.2250. A potential corrective zigzag might be underway.
Potential counts are: The drop between 1.2800 and 1.2250 could be Wave A within the proposed A-B-C correction. The subsequent rally towards 1.2670 could be potential Wave B and Wave C might be underway towards 1.1900 handle.
Also note that 1.1900/50 is close to the fibonacci 0.618 retracement of the entire rally between 1.1414 through 1.2800 respectively. High probability remains for a bullish bounce if prices manage to reach there.
Short against 1.2800, target is 1.1900/50
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