Analysis of wave counting:
Having easily overcome the lower forming line of the rising channel, during the trades of the past week, the GBP / USD pair continued its decline, losing almost 300 percentage points and tested the level of the 35th figure on Friday. At the same time, the entire price decrease from the April 17 maximum (1.4375) can still be regarded as the process of forming the dynamically developing internal wave structure of the wave c, b, B, C, C, (A). If this is so, then before the beginning of the future wave d, b, B, C, C, (A) or even resume the development of the main upward trend, the currency pair can continue the downward movement to the level of 1.3400.
The objectives for working off a variant with a downward wave:
1.3443 - 38.2% of Fibonacci
1.3165 - 50.0% of Fibonacci
The objectives for working out the variant with an upward wave:
1.4000 - 1.4200
General conclusions and trading recommendations:
The pound sterling continues the construction of the assumed wave B, C, C, (A). This week, the lowering of quotations may continue within the wave b, B, C, C, (A) with targets near the markings of 1.3443 and 1.3165, which corresponds to 38.2% and 50.0% of Fibonacci. An unsuccessful attempt to break through the 1.3443 mark may lead to the withdrawal of quotations from the achieved minimum and the construction of the wave d, b, B, C, C, (A).
