Analysis of wave counting:
Trades in the previous week showed that the GBP/USD pair started with a downward movement, lost about 160 points and ended the Friday's session under the level 29.
Thus, we can assume that the currency pair continued the process of forming the 5th wave, in the 3rd (or C), found in the new uptrend region, retained the potential growth of quotations towards the direction of level 33.
At the same time, the possibility of renewed price reduction and a significant complication of the entire wave C in ( C ), in C, continues to be relevant.
The targets for a downward wave option:
1.2626 - 61.8% Fibonacci
1.2536 - 76.4% Fibonacci
The targets for an upward wave option:
1.3024 - 127.2% Fibonacci
1.3273 - 161.8% of Fibonacci
General conclusions and trading recommendations:
The pound sterling continued to establish a long upward correction. This week, prices are expected to increase within the wave 5, at 3 or C. The targets are located near the 1.3024 and 1.3273 marks which correspond to 127.2% and 161.8% by the Fibonacci.
The Wave 4, at 3 or C has completed its formation. The upward channel maintained the prospects for creating an uptrend region.
Failure to break the mark 1.3024 again will lead to the withdrawal of quotes from its highs.
