Analysis of wave counting:
In general, as expected, testing the target in the area of 1.3370 level yesterday provoked the price rebound for the GBP/USD pair by almost 70 pp. from the highs reached in the second half of the day (1.3380). Thus, the achieved ratio between the dimensions of the waves a and c, in e, in b, in the 4th, and also the internal wave dimensionality of the wave c, in this e, in b, in the 4th, makes it possible to assume that the currency pair has already completed the process of forming the entire wave e, in b, in the 4th. If this is the case, then the marked decline in quotes can be considered as the beginning of the future wave e, in b, in the 4th.
Targets for a downward wave option:
1.3065 - 38.2% by Fibonacci
1.2882 - 50.0% by Fibonacci
Targets for an upward wave option:
1.3382 - 161.8% by Fibonacci
General conclusions and trading recommendations:
The construction of the downward wave 4 in the upward trend section continues. Now it is possible to resume the decline in the price of the trading instrument with targets near the estimated level of 1.2882, which corresponds to 50.0% of the Fibonacci, within the wave c, in 4. Wave b, in 4, so far, continues its construction by complicating its internal structure, with targets located near the mark of 1.3382, which is equivalent to 161.8% Fibonacci.
