Analysis of wave counting:
In the trades of the past week, the GBP/USD pair started from the upward movement and finished the Friday session with breakdown of the level of the 32nd figure, having reached the level of 1.3230. Thus, the emerging wave situation suggests that the currency pair has so far remained in the stage of formation of the first generating waves in the future wave c, in the 4th. If this is the case, wave b, in the 4th, nevertheless, does not take the form of an even more complex and extended horizontal correction, then the currency pair can resume the decline of quotes at any time towards the 1.2880 mark.
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
General conclusions and trading recommendations:
The sterling pound continues to build a downward set of waves in the composition of 4. This week, the quotes are expected to decrease within the wave c, to 4, with upward sections of the trend with targets located near the estimated marks of 1.3065 and 1.2882, which corresponds to 38.2% and 50.0% Fibonacci. The upward movement still retains the prospects for building an uptrend. Wave b, in 4 supposedly completed its construction, but several unsuccessful attempts to surpass the 1.3065 mark suggests the possible complication of the wave structure of wave 4.
