Analysis of wave counting:
In general, it is expected that last week, the GBP / USD pair started trading from the upward movement, having added more than 250 pp in price and worked out the 1.3335 mark on Friday. Thus, the emerging wave situation allows us to consider the minimum of October 6 (1.3025) as the completion of wave a, in the supposed 4th, and the subsequent growth of quotations, as the process of formation of wave b, in the 4th. If this is the case, then despite the available potential for testing the level of 1.3400, the currency pair can resume the descending movement at any time and mark the beginning of the wave c, in the 4th.
The objectives for working out a downward wave option:
1.3065 - 38.2% of Fibonacci
1.2882 - 50.0% of Fibonacci
Goals for developing the option with an upward wave:
1.3291 - 23.6% of Fibonacci
General conclusions and trading recommendations:
The pound sterling has supposedly completed the construction of an upward wave 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. Within the construction of a corrective wave b, 4, it is possible to continue the increase with targets near the mark of 1.3291, which corresponds to 23.6% of Fibonacci.
