GBPUSD might be preparing to reverse either from current levels (1.3130/40) or after printing yet another high above 1.3185 levels, going forward. If it is unfolding as a triangle consolidation prices would stay above 1.3000 levels and reverse.
GBPUSD probable wave counts are as follows: The currency had dropped through fresh lows around 1.1414 levels in March 2020. Since then it has been in control of bulls and managed to print a series of higher highs and higher lows through 1.2800/10 levels.
The rally from 1.1414 through 12800/20 can be clearly subdivided into 5 waves, making an impulse. The subsequent drop through 1.2250 could be marked as Wave B and the rally towards 1.3185 thereafter, could be Wave C.
Wave C has either terminated around 1.3185 or might print yet another high before terminating. Either way, GBPUSD might be close to forming a potential top and should be heading lower again. The currency might at least retrace the entire rally through 1.2100 levels.
Also note that 1.2100 is close to previous wave 4 of one lesser degree (not seen on the chart here). Hence a bullish bounce could be expected if prices manage to reach there. Alternately, GBPUSD might slip towards fresh lows below 1.1414 before reversing higher again.
Traders might remain inclined to initiate fresh short positions around current levels (1.3140), with protective stops above 1.3250 mark and projected targets towards 1.2100 mark at least. Only a consistent break below 1.1900 would push through fresh lows.
Technical Analysis Team
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