Analysis of wave counting:
The attempt to resume the upward movement made during the trading last week ended in failure, and from the 1.3465 mark, the GBP/USD pair returned to the 33rd figure area. Thus, the emerging wave situation suggests that the currency pair remained in the stage of formation of the wave c, in the 4th, somewhat complicating its internal wave b. If this is the case, the currency pair retains the potential to continue the reduction of quotations towards the 1.3065 mark, or even at the level of 1.3000.
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, there is an expected resumption of a decline in quotations within the wave c, in the 4 upward trend areas with targets located near the estimated 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, at 4 can take an even more complicated form, and all wave counting can undergo adjustments.
