Analysis of wave counting:
At the beginning of Friday's European session, the pair GBP / USD still resumed the decline, having lost more than 100 pp, and was fixed at the level of the 29th figure. Thus, it can be assumed that the currency pair remained in the formation stage of the waves b, b, C, c and (C); which considerably complicated its wave structure. If this is the case, then in the process of completion of the waves a, b, b, C, and (C); the currency pair can continue the development of the downward movement up to the level of 1,2800. At the same time, as noted earlier, there are no significant obstacles to the resumption of the growth of quotations and the beginning of the formation of the waves c, b, C, and (C).
Objectives for a downward wave option:
1,2883 - 23.6% by Fibonacci
1,2784 - 38.2% by Fibonacci
Objectives for an upward wave option:
1,3027 - 261.8% by Fibonacci
1,3100 – 1,3200
General conclusions and trading recommendations:
The British currency completed the construction of the wave a, C, (C). At the moment, the quotations are expected to decrease within the limits of wave b, b, C, and (C) (if this wave takes a more complicated form) with targets located near the marks of 1,2883 and 1,2784, which corresponds to 23.6% and 38.2% by Fibonacci. After the completion of this wave, it is possible to resume the increase in quotations within the wave c, b, C, and (C) with targets above 31 figures.
