Analysis of wave counting:
So, unable to resume the upward movement, last week's GBP / USD pair started with a decline, having lost about 370 pp and reached 1.3025 on Friday. Thus, it can be assumed that the currency pair confirmed the transition to the stage of formation of the 4th wave, as part of the rising trend section, which began in mid-January of this year. In this case, the wave a, in this fourth, began to take a completely completed form. If this is the case, then from the already reached minimum or after testing the level of the 30th figure, the currency pair will execute a turn and designate the beginning of wave b, in the supposed 4th.
The objectives for a downward wave option:
1.3065 - 38.2% of Fibonacci
1.2882 - 50.0% of Fibonacci
The objectives for an upward wave option:
1.3291 - 23.6% of Fibonacci
General conclusions and trading recommendations:
The pound sterling has supposedly completed the construction of an upward wave of 3 or C. This week, the quotes are expected to fall within wave a, into the 4 upward trend areas with targets located near the calculated marks of 1.3065 and 1.2882, which corresponds to 38.2% and 50.0% of Fibonacci. The upward corridor still retains the prospects for building an uptrend. In the framework of constructing a corrective wave b, 4, an increase with targets near the mark of 1.3291 is possible, which corresponds to 23.6% of Fibonacci.
