During the Asian session, the GBP/USD pair developed the poor “bullish” impulse formed yesterday and tested the level of 1.2470 for a breakout against British macroeconomic statistics.

The GBP/USD pair has been declining for the second month, reaching the November low of 1.2405 amid differences in approaches to monetary policy by the US Fed and the Bank of England.

The GBP/USD pair shows a slight decline, remaining close to 1.2430 and local lows dated November 17, 2023.

The price is in a correction and a fall is possible.

On the daily chart, the upward first wave of the higher level (1) formed, and a downward correction develops as the second wave (2). Now, the wave B of (2) has ended, and the wave C of (2) is forming, within which the third wave of the lower level iii of C is developing. If the assumption is correct, the GBP/USD pair will fall to the area of 1.2077–1.1742. In this scenario, critical stop loss level is 1.2712.

During the morning session, the GBP/USD pair is trading at 1.2630, preparing to continue rising to 1.2697.