Analysis of wave counting:
The downward movement, which began on the eve, did not receive further development and at the beginning of yesterday's European session, the GBP / USD pair resumed the growth of quotations, retracing to 1.3270 at the end of the day. The resulting wave situation allows us to assume that the internal wave structure of wave b, in the fourth, still acquired signs of unfinished horizontal correction. If this is so, then for some time, the currency pair will remain within the corridor, limited by the levels of the 31st and 33rd figures.
The objectives for building the downward wave:
1.3065 - 38.2% of Fibonacci
1.2882 - 50.0% of Fibonacci
The objectives for building an 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. It is now possible to reduce 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 wave d, b, 4. Within the expected wave c, b, 4 continues the increase with the targets, located near the mark of 1.3291, which is equal to 23.6% of Fibonacci.
