Analysis of wave counting:
Trades of the past week, the GBP/USD pair began with the expected downward movement and on Thursday managed to reach the mark of 1.3320. The resulting wave situation makes it possible to assume that, after completing wave b, in the 4th, the currency pair made an attempt to go to the stage of formation of the first generating waves in the future wave c, in the 4th. If this is the case, the currency pair may continue to show a decline in quotes in the direction of the targets for this future wave c, in the fourth, the first settlement targets of which are possibly located at around 1.3065.
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 is expected, in 4 upward sections of the trend with targets located near the calculated marks of 1.3065 and 1.2882, which corresponds to 38.2% and 50.0% of the Fibonacci. The upward movement still retains the prospects for building an uptrend. Wave b, in 4 can take an even more complex look.
