Analysis of wave counting:
As expected, during the trades of the previous week, the GBP / USD pair continued its downward movement and only after working off the mark of 1.2775, rebounded from the lower forming line of the rising channel. Thus, we can assume that as a result of this decline, the currency pair completed the formation of wave a, in the 4th, as part of the upward trend segment, which starts from the lows of the beginning of the year. If this is so, then the rise in quotations on Friday may turn out to be the beginning of wave b, in the 4th, whose calculated targets are in the region of the level of the 30th figure.
The objectives for a downward wave option:
1.2688 - 50.0% by Fibonacci
1.2551 - 61.8% by Fibonacci
Goals for an upward wave option:
1.3273 - 161.8% by Fibonacci
1.3435 - 161.8% by Fibonacci
General conclusions and trading recommendations:
The pound sterling has completed the construction of wave 3 or C. If this is the case, then this week, it is expected that the quotations will continue to fall within wave 4 with targets located near the marks of 1.2688 and 1.2551, which corresponds to 50.0% and 61.8% of Fibonacci. The upward corridor preserves the prospects for building an uptrend section of the trend. An unsuccessful attempt to break the 1.2688 mark may lead to the completion of wave 4.