After active growth at the beginning of the month, the GBP/USD pair is reversing downwards with the support of a local correction of the American currency, holding during the Asian session at 1.2888.

Growth is possible.

On the daily chart, the upward first wave of the higher level (1) formed, a downward correction ended as the second wave (2), and the third wave (3) forms, within which the third wave of the lower level 3 of (3) develops. Now, the wave iii of 3 is forming, within which the wave (i) of iii has ended, and a local correction is developing as the wave (ii) of iii. If the assumption is correct, the GBP/USD pair will grow to the area of 1.3350–1.3750. In this scenario, critical stop loss level is 1.2827.

The GBP/USD pair has been actively growing for the third week in a row: yesterday, the price reached annual highs around 1.3044, maintaining growth potential. The pound is supported by the publication of data on inflation and the labor market, which reduce the likelihood of an August adjustment of the key rate by the Bank of England.