Analysis of wave counting:
Despite a fairly strong divergence of MACD, during the Friday's trading, the pair GBP / USD was able to continue the upward movement and work out the mark of 1.3335 in the second half of the day. At the same time, we can assume that the currency pair remained in the stage of formation of the wave b approaching its completion, in the 4th. If this is the case, then from the maximum of the last day of the past week, or even after testing the level of the 34th figure, the currency pair may resume the decline of quotations in the direction of the minimum already reached on October 6 (1.3025).
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
1.3400
General conclusions and trading recommendations:
The downward wave 4 continues to build in the upward trend section. Now, it is possible to resume the lowering of quotations with targets near the estimated levels of 1.3065 and 1.2882, which corresponds to 38.2% and 50.0% of Fibonacci, within the limits of wave c, 4. Within the corrective wave b, 4, the increase continues with targets near the level of 1.3291, which corresponds to 23.6% of Fibonacci and above about 34 figures. The divergence of the MACD warns of the willingness of the instrument to build a downward wave.
