The impulsive structure seen on the British pound suggests further upside as part of minor wave 1.
With the corrective ‘three’ fully completed on a false break below minor A low, this projection assumes that the upside is a 2-degree impulse. It is consisting of 5-wave structures of the minuette and minute degree and has a target the 100% Fibonacci extension near 1.3193.
Should the current correction towards 1.30 prove to be a test, we could see minor wave 1 as a reversal to the upside.
The end of the minor degree impulse could end beyond 1.3515 as part of the intermediate wave (5).
In case the current upside structure is not seen as a 2-degree impulse, it can be assumed that it has taken a double zigzag formation.
This would hint to fresh lows below the most recent 1.2872 support test as the bearish minuette structure looks incomplete as a flat.
The last wave of a flat pattern is an impulse usually extending 161.8% of the first two waves range.
However, before turning lower, a slight upside could be seen, anywhere between 1.3066 and 1.3141 as wave (y) has more room for another wave up.
The downside is expected to reach a level of identical range of the triangle pattern, near 1.28, where minor (4) is expected to end.