Analysis of wave counting:
Yesterday's GBP / USD trades began with the continuation of the upward movement, having added more than 80 pp in price and completed the day above the level of the 32nd figure. Thus, the emerging wave situation suggests that the currency pair was still in the stage of formation of the wave b, 4th. At the same time, despite the remaining potential for further growth of quotations to the level of 1.3300, or even 1.3400, the currency pair may resume the downward movement, in connection with which wave a, in the 4th will look like an incomplete five-wave structure.
The objectives for building the downward wave:
1.3065 - 38.2% of Fibonacci
1.2882 - 50.0% of Fibonacci
The objectives for building the upward wave:
1.3291 - 23.6% of Fibonacci
General conclusions and trading recommendations:
The construction of the downward wave 4 in the upward trend section continues. It is now possible to resume the lowering of quotations with targets near the calculated marks of 1.3065 and 1.2882, which corresponds to 38.2% and 50.0% of Fibonacci, within wave a, 4. Within the corrective wave b, 4, the increase continues with targets near the 1.3291 mark, which corresponds to 23.6% of Fibonacci.
