During the Asian session, the GBP/USD pair is correcting at 1.3285, interrupting the positive trend that had been recorded since the beginning of the month.

The GBP/USD pair is trading with downward dynamics, developing a corrective momentum formed the day before. The instrument is testing 1.3300 for a breakdown, although during the morning session it dropped to 1.3230. The "bearish" trend is being driven by technical factors as the pound, like many other currencies paired with the US dollar, has been heavily overbought in recent times.

Growth is possible.

On the daily chart, the correction ended as the second wave of the highest level (2), and the third wave (3) and the first wave of the lowest level 1 of (3) started. Now, the wave iii of 1 and the correctional wave iv of 1 have ended, and the wave v of 1 is developing. If the assumption is correct, the GBP/USD pair will grow to the area of 1.3575–1.3825. In this scenario, the critical stop loss level is 1.3200.

Yesterday, the GBP/USD pair reached seven-month highs around 1.3290, but has now corrected to around 1.3240: the dollar remains under pressure from the risks of a recession in the American economy amid the trade conflict with China.