Analysis of wave counting:
Having failed to complete the reversal, yesterday's GBP / USD trades started with the continuation of the downward movement, having lost about 140 percentage points and reached 1.3255 in the afternoon. Thus, the emerging wave situation allows us to consider (with considerable stretch) the maximum from September 20 (1.3655) as the top of the entire 3rd wave (or C), and the subsequent price decrease, as the process of forming the internal wave structure of wave a, in the proposed 4th, as part of a rising trend section, which began in mid-January of this year. If this is so, keeping the potential to lower the quotations to around 1.3065, the currency pair can indicate the beginning of the corrective wave b, in the expected 4th, or from the low of the past day, or from the 1.3185 mark.
The objectives for building the downward wave:
1.3186 - 200.0% of Fibonacci
1.3062 - 38.2% of Fibonacci
Aims for building the upward wave:
1.3480 - 11.4% of Fibonacci
General conclusions and trading recommendations:
The proposed wave 3 or C has completed its construction. Now, it is possible to lower the quotations with targets near the calculated marks of 1.3186 and 1.3062, which corresponds to 200.0% and 38.2% of Fibonacci, within a, 4. Within the corrective wave b, 4 may begin increase with targets near the mark of 1.3480, which corresponds to 11.4% of Fibonacci. An unsuccessful attempt to break the 1.3264 mark may lead to the construction of a corrective wave.
