Analysis of wave counting:
Despite its efforts, the GBP/USD failed to complete the reversal and, resuming Tuesday's upward movement, reached the 1.3550 mark by Friday's close. In the conditions that have developed under this circumstances, there have appeared grounds that makes it possible to consider the highs of the first December session as the peak that took the form of a five-wave structure, waves c, in b, in the 4th. If this is the case, then from the already achieved highs, or after testing the level of the 36th figure, the currency pair will still begin to decline quotations, going to the stage of forming the future wave c, 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:
1.3479 - 11.4% by Fibonacci
1.3600
General conclusions and trading recommendations:
The sterling pound continues to build a downward set of waves in the composition of 4. This week, a resumption of the decline in quotes within the wave c, in 4 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% of the Fibonacci, is expected. The upward movement still retains the prospects for building an uptrend. Wave b, in 4 resumed its construction and takes on an increasingly complex form.
