Analysis of wave counting:
After being unable to resume the upward movement, yesterday's GBP/USD trades started with a decline and, losing about 130 percentage point in price, reached 1.3965 in the afternoon. The resulting wave situation suggests that after January 25 the currency pair is within the limits of wave b, in B, in C, in C, in (A) of the main downward trend and at the moment forms the wave structure of its internal wave c. If this is the case, then the currency pair has good prospects for further lowering of quotations in the direction of the level of the 37th figure.
Targets for a downward wave option:
1.3946 - 38.2% by Fibonacci
1.3823 - 50.0% by Fibonacci
Targets for an upward wave option:
1.4226 - 11.4% by Fibonacci
1.4400
General conclusions and trading recommendations:
Wave counting has been through some changes. It is now expected that the quotations will continue to decrease with the targets near the estimated levels of 1.3946 and 1.3823, which corresponds to 38.2% and 50.0% Fibonacci, within the wave b, in B, in C, in C, in ( A). The assumed wave b has completed its construction.
