Analysis of wave counting:
In general, the GBP/USD pair is expected to begin trading with the continuation of the downward movement yesterday. After losing its price of more than 80 pp, the pair was able to reach the mark of 1.3360 at the end of the day. The arising wave situation can be assumed that the currency pair remained in the formation stage of the internal wave structure of the 3rd wave, in the future wave s, in the 4th. At the same time, the indicators included in the oversold zone indicates the possibility of the currency pair to conduct a reversal versus the dollar, with the prospect of resuming the price growth and even more complicating the 5th wave, in c, in b, in the 4th.
Target for building a downward wave:
1.3065 - 38.2% Fibonacci retracement
1.2882 - 50.0% Retaliation of Retina
Targets for building an upward wave:
1.3538 - 161.8% Fibonacci retracement
1.3600
General conclusions and trading recommendations:
The construction of the downward wave 4 in the upward trend section continues. As of this writing, it is possible to continue the price decline of the instrument with the targets near the estimated level of 1.2882. This further corresponds to 50.0% of Fibonacci, within the limits of wave c, in 4. Wave b, at 4 can still resume its construction that complicates its internal structure even more, with targets above the 1.3538 mark equivalent to 161.8% Fibonacci.* The presented market analysis is informative and does not constitute a guide to the transaction.
