Analysis of wave counting:
During the trading of the past week, the GBP / USD pair started from the upward movement, breaking through the reached maximum on July 18 and tested the mark of 1.3150 on Thursday. Thus, the internal wave structure of the 5th wave, in the 3rd (or C), took a quite complex form but at the same time, almost completed appearance. At the same time, it should be noted that while maintaining the potential for continuing the growth of quotations to around 1.3260-1.3275, the currency pair may move to the stage of forming an extended downward correction from the maximum reached on July 27.
Objectives for a downward wave option:
1.3024 - 127.2% by Fibonacci
1.2828 - 100.0% by Fibonacci
Objectives for an upward wave option:
1.3273 - 161.8% by Fibonacci
General conclusions and trading recommendations:
The pound sterling continues to build a long upward correction. This week, the quotations are expected to increase within wave 5, at 3 or C, with targets near the mark of 1.327, which corresponds to 161.8% of Fibonacci. The upward corridor preserves the prospects for building an uptrend section of the trend. An unsuccessful attempt to break the mark of 1.3273 may lead to the completion of wave 3 or C. The divergence of the MACD also warns of the willingness of the instrument to lower the quotes.