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We can use some tools to estimate where (v) may carry to.
Oftentimes, (v) has an equal or Fibonacci relationship to the length of (i). Additionally, the projection of (v) can be relative to the size of waves (i)-(iii).
Here’s a listing of those price targets in order:
Wave (v) = .382 x (i)-(iii) = 1.3231
Wave (v) = (i) = 1.3317
September 26, 2024 high = 1.3434
Wave (v) = .618 x (i)-(iii) = 1.3455
Wave (v) = 1.618 x (i) = 1.3601
Therefore, two clusters of pricing emerge as potential target zones for (v).
The first cluster zone is 1.3231-1.3317, or about 1.33.
The second cluster zone is 1.3434-1.3601, or about 1.34-1.36.
Bottom Line
GBPUSD is currently rallying in a multi-month wave 3.
However, the first subwave, wave ((i)) is about complete. We suspect it may finalize around 1.33 or 1.35-1.36. Once wave ((i)) is in place, then the largest decline since January kicks off in wave ((ii)) likely carrying back to 1.25-1.29.
Key Level for Bullish Bias: 1.25
Initial Target: 1.33-1.36
Secondary Target: 1.53 (longer-term)
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