My wave count for GBP/USD is presented on the chart. I think there is a high possibility that the movement started from 1.4977 (high from 9 February) could hit a new record low below 1.3503 (low from 23 January). If this assumption turns out to be correct, we should see an impulsive fall. Wave 1 of it finished at 1.4137 and wave 2 started from there. One of the possibilities is that wave 2 is already over at 1.4604 and the current fall is beginning of wave 3 for the anticipated low below 1.3500. However I think that the more likely scenario is that at 1.4604 finished not the entire wave 2 but a wave of one lesser degree – wave a of 2 i.e. wave 2 will turn out to be a complex irregular flat structure. If this is the case, one should expect one more attempt up in wave c with potential 1.4500 before the wave 2 is over and beginning of a sharp sell-off below 1.3500 in wave 3. The alternative is the fall started from 1.4977 to be not impulsive but corrective, However even if this scenario is developing, I would expect lower levels from current ones.

This analysis has only informational and educational purpose and does not represent a proposal for buying or selling currency contracts.