Analysis of wave counting:
At the beginning of yesterday's European session, the GBP / USD pair began a pullback from the already reached minimum, having added almost 100 pp in price, and tested the level of the 29th figure in the middle of the day. The resulting wave situation allows us to assume that as early as Monday the currency pair moved to the stage of formation of wave b, b, b, C, (C), which in the course of its development can take the form of oblique correction. If this is the case, then despite the continuing divergence of the MACD, the currency pair retains the potential to continue lowering the quotations to the level of 1.2700.
Objectives for a downward wave option:
1,2784 - 38.2% by Fibonacci
1.2704 - 50.0% 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 has completed the construction of the wave a, C, (C). At the moment, the quotations are expected to decline within the wave b, b, C, (C), with targets located near the marks of 1,2784 and 1,2704, which corresponds to 38.2% and 50.0% of Fibonacci. After the completion of this wave, it is possible to resume the increase in quotations within the wave c, b, C, (C), with targets above 31 figures.
