Analysis of wave counting:
On the wave of strengthening the dollar in the second half of yesterday's trading, the currency pair GBP / USD continued to develop a downward movement and was able to work out the mark of 1.3860 in the middle of the American session. It can be assumed that, despite this decline, the currency pair remained in the stage of formation, which significantly complicated its wave structure of the wave 2, 5, 5, a, B, C, C, (A). If this is so, then practically from the minimum of the past day, the currency pair will resume the growth of quotations and thus mark the beginning of the wave 3, 5, 5, a, B, C, C, (A ). At the same time, the drop in price to the level of the 37th figure will most likely confirm the further formation of the wave 4, 5, a, B, C, C, (A) as a rather complex correction triangle.
The objectives for building a downward wave:
1.3880 - 76.4% of Fibonacci
1.3823 - 50.0% of Fibonacci
1.3700 - 61.8% of Fibonacci
The objectives for building an upward wave:
1.4294 - 685.4% of Fibonacci
1.4400
General conclusions and trading recommendations:
The construction of the upward trend section continues. Now, the quotations are expected to increase by targets that are around 44 figures within wave 5, 5, a, B, C, C, (A). The construction of the correction wave 2 with targets near the marks of 1.3880 and 1.3823, which corresponds to 76.4% and 50.0% of Fibonacci, is supposedly completed, but the wave may well take a more complicated look.
