Analysis of wave counting:
In general, it is expected that during the trades of the previous week, the GBP / USD pair resumed the downward movement after losing more than 170 pp and completed the Friday session by working out the mark of 1.2830. It can be assumed that the currency pair confirmed the completion of the 3rd wave (or C) and moved to the stage of formation of an extended downward correction, which can be qualified as an incomplete wave structure of the 4th wave, as part of an uptrend segment that started from the beginning of the year. If this is so, then the currency pair may have good prospects for lowering the quotations to the level of the 27th figure or to the level of 1.2550.
The objectives for a downward wave option:
1.2825 - 38.2% by Fibonacci
1.2688 - 50.0% by Fibonacci
The objectives for an upward wave option:
1.3273 - 161.8% by Fibonacci
1.3435 - 161.8% by Fibonacci
General conclusions and trading recommendations:
The pound sterling supposedly completed the construction of wave 3 or C. If this is the case, then this week the quotations are expected to fall within wave 4 with targets located near the marks of 1.2825 and 1.2688, which corresponds to 38.2% and 50.0% of Fibonacci. The upward corridor preserves the prospects for building an uptrend section of the trend. An unsuccessful attempt to breach the 1.2825 mark may lead to the completion of wave 4.
