Analysis of wave counting:
Last Thursday's development of the settlement target, corresponding to 1.3260, led to the expected reversal and the subsequent drop in the price of the GBP / USD pair by more than 240 percentage points. The current wave situation allows us to assume that the currency pair remained in the stage of formation of the 5th wave, in the 3rd (or C), probably completing its internal 3rd wave. If this is so, then from the reached minimum on Friday, the currency pair will resume the growth of quotations to the level of the 33rd figure or to the mark of 1.3370.
The objectives for working off the option with a downward wave:
1.3024 - 127.2% by Fibonacci
1.2828 - 100.0% by Fibonacci
The objectives for working out the option with an upward wave:
1.3273 - 161.8% by Fibonacci
1.3435 - 161.8% by Fibonacci
General conclusions and trading recommendations:
The pound sterling continues to build a long upward correction. This week, it is expected to resume the increase in quotations within wave 5, 3 or C with targets located near the mark of 1.3273 and 1.3435, which corresponds to 161.8% and 161.8% of Fibonacci. The upward corridor preserves the prospects for building an uptrend section of the trend. An unsuccessful attempt to breach the 1.3273 mark led to the construction of a corrective wave inside 3 or C.