Analysis of wave counting:
Despite the strong overbought indicators, during the trades of the last session of the past year, the GBP / USD pair started from the upward movement, having added about 110 pp in price and managed to work out the mark of 1.3540. At the same time, it seems that as a result of the price return to the maximum area from December 1, the currency pair may complete the 2nd wave, in the 5th, a, B, C, C, (C) and confirm transition to the stage of formation of the third wave, in the 5th, a, B, C, C, (C). At the same time, a possible decline in market activity in the early days of the new year could provoke a return of the currency pair to the level of the 33rd figure and a significant complication of the internal wave structure of the 2nd wave, in the 5th, a, B, C, C, (C).
The objectives of building the downward wave:
1.3291 - 23.6% of Fibonacci
1.3200
The objectives for the construction of an upward wave:
1.3550 - 1.3600
General conclusions and trading recommendations:
The construction of the upward trend section continues. It is now possible to continue increasing quotations within wave 3, a, B, C, C, (C) with targets above 1.3550. Overbought indicators allow the probability of complicating the wave 2, 5, a, B, C, C, (C) and, accordingly, the resumption of decline in quotations.
