Analysis of wave counting:
Yesterday's GBP/USD trades began with a downward movement and, losing about 90 pp, fell to 1.3085 in the afternoon. The resulting wave situation makes it possible assume that the currency pair remained in the stage of formation of the first generating waves in the composition of the third wave, in c, in the 4th wave. If this is the case, wave b, in the 4th, still does not take the form of an even more extensive horizontal correction, thus the currency pair will continue to decline quotations in the direction of the level of the 30th figure.
Targets for a downward wave option:
1.3065 - 38.2% by Fibonacci
1.2882 - 50.0% by Fibonacci
Targets for an upward wave option:
1.3291 - 23.6% by Fibonacci
1.3400
General conclusions and trading recommendations:
The construction of the downward wave 4 in the upward trend section continues. Now it is possible to lower quotes within targets near the estimated level of 1.2882, which corresponds to 50.0% of Fibonacci, within wave 3, in c, in 4. Wave b, in 4 supposedly completed its construction near the level of 1.3291, which corresponds to 23.6% of Fibonacci.
