Analysis of wave counting:
During yesterday's trading, repeated testing of the level of the 31st figure and reaching the level of 1.3125 resulted in a 120 pp rebound in the price of the pair GBP / USD. The maximum already reached at the beginning of the European session. It can be assumed that the currency pair remained in the stage of forming the 3rd wave, 5th wave, and the 3rd wave, or C, which, most likely, began to take a much more complex form. If this is the case, then, before resuming the growth of quotations, the currency pair may continue to decline and work off the mark of 1.2950.
Objectives for a downward wave option:
1.2900 - 1.3000
Objectives for an upward wave option:
1.3148 - 76.4% by Fibonacci
1.3200
General conclusions and trading recommendations:
The British currency has undergone making adjustments to wave counting. At the moment, the quotations are expected to increase within wave 5, 3 or C, with targets near the mark of 1.3148, which corresponds to 76.4% of Fibonacci, and above about 32 figures. Within the framework of the corrective wave 2, 3, 5, 3 or C, the quotes can move away from the maximum reached to the area of figure 30.