The current GBPUSD structure shows a completed primary Ⓐ-Ⓑ-Ⓒ zigzag in wave b. This pattern is part of the cycle degree correction a,b,c.
After the conclusion of wave b, bulls pushed prices higher to form a 5-wave impulse, labeled as the primary wave ①.
This impulse consists of intermediate sub-waves (1)-(2)-(3)-(4)-(5).
At the time of writing, four-fifths of this pattern look fully completed. Hence, we can expect wave (5) to end this upside move; either as ① or Ⓐ.
The impulsive move can be completed near 1.283. The projected target will be the 61.8% expansion of the wave (3).
Since we are trading below wave (3), an alternative scenario must be considered.
In this scenario, the intermediate correction in wave (4) is not yet completed. This suggests that the corrective pattern could take the form of a triple zigzag consisting of minor sub-waves W-X-Y-X-Z.
In the short term, a marginal upside move could complete intervening wave X near the 1.244 area. The target would respect the immediate resistance.
Once completed, wave Z could be expected next near the 1.216 area, which is the support line of the descending channel.
