Analysis of wave counting:
Having failed to determine the direction of the movement, yesterday's GBP / USD traded within a narrow range, with a maximum amplitude of price changes of just over 50 pp. At the same time, it can be assumed that the currency pair still remained in the formation stage of a rather complex waveform c, as part of a downward correcting structure, starting from the maximum on August 3. If this is the case, the currency pair retained the potential, allowing it to resume the decline of quotations to the level of 1.2790 or even to the level of 1.2700.
The objectives for building the downward wave:
1.2835 - 61.8% by Fibonacci
1.2789 - 76.4% by Fibonacci
Goals for the construction of the upward wave:
1.3000 - 1.3100
General conclusions and trading recommendations:
The British currency has completed the construction of the wave 3 or C of the upward trend section. In this case, the internal wave structure of this wave may require the introduction of adjustments and significantly more complicated. The decline in quotes may continue with targets near the estimated levels of 1.2835 and 1.2789, which corresponds to 61.8% and 76.4% of Fibonacci, within the limits of the supposedly 3-wave downward structure.
