Analysis of wave counting:
Last week, the trades started with the continuation of the upward movement. The pair GBP / USD added more than 450 pp in price and finished the Friday session with the breakdown of the level of the 36th figure. Thus, in connection with the price increase above the level of 1.3270 (maximum of August 3), it became necessary to refine the wave marking of the 4th wave, in the 3rd wave (or C). At the same time, the currency pair has the prerequisites for the further development of the internal wave structure of the 5th wave, in the 3rd (or C), towards the 1.3850 mark or even 1.3950.
The objectives for a downward wave option:
1.3260 - 127.2% of Fibonacci
1.3100
Targets for an upward wave option:
1.3629 - 200.0% of Fibonacci
1.3850 - 261.8% of Fibonacci
General conclusions and trading recommendations:
The pound sterling resumed the construction of the upward wave of 3 or C. This week, it is expected to continue increasing quotations within the wave 5, 3 or C with targets located near the calculated marks of 1.3629 and 1.3850, which corresponds to 200, 0% and 261.8% of Fibonacci. The upward corridor still retains the prospects for building an uptrend. An unsuccessful attempt to break through the 1.3629 mark may lead to the withdrawal of quotes from the maximum reached.
