Analysis of wave counting:
High volatility during yesterday's trading did not allow the GBP/USD pair to develop the downward movement started on Friday and, after the rebound to 1.3540, the price was fixed near the opening levels of the day. It can be assumed that the currency pair can confirm the transition to the stage of formation of the first generating waves in the future wave c, in the 4th. At the same time, yesterday's the currency pair's failure to reverse in favor of the dollar could lead to the resumption of the growth of quotations and an even more complicated internal wave structure of the 5th wave, in c, 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:
1.3538 - 161.8% by Fibonacci
1.3600
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 Fibonacci, within the wave c, in 4. Wave b, in 4, can still continue its construction, complicating its internal structure even more, with targets above the 1.3538 mark, which is equivalent to 161.8% of Fibonacci.
