Analysis of wave counting:
The attempt to gain a foothold above the level of the 42nd figure has failed. After the decline on Tuesday has been renewed, the GBP/USD pair lost about 230 pp, reaching 1.4010 by the end of last week. Thus, the emerging wave situation allows us to assume that in the event of further development of the already emerging downward movement, the currency pair will return to the process of forming the wave b, in B, in C, in C, in (A) in the form of a practically horizontal correction structure. At the same time, the currency pair continues to maintain the potential of resuming the growth of quotations at least to the level of 1.4400 and a significant complication of the internal wave structure of the 5th wave in a, in B, in C, in C, in (A).
Objectives for working off a variant with a descending wave:
1.3691 - 50.0% by Fibonacci
1.3537 - 61.8% Fibonacci retracement
The objectives for working out the variant with an upward wave:
1.4400 - 1.4600
General conclusions and trading recommendations:
The sterling pound continues the construction of the assumed wave B, in C, in C, in (A). This week, the lowering of quotations may resume within the wave b, in B, in C, in C, in (A) with targets near the markings of 1.3691 and 1.3537, which corresponds to 50.0% and 61.8% by Fibonacci. The rising boundary levels preserve the prospects of constructing an ascending set of waves in a, in B, in C, in C, in (A), given the growth of quotations in the past days. The construction can resume and greatly complicate its internal structure with targets above the 44th figure.
