Analysis of wave counting:
The attempt of the GBP / USD pair to continue the development of the upward movement made at the end of the day ended in failure and until the close of yesterday's trading the price fell back to the level of 1.3450. At the same time, we can assume that despite the breakdown of the maximum reached last Friday, the currency pair remained in the formative stage of the slightly more complex form of the 4th wave, 5th, 5th, 3rd (or C ). If this is the case, the currency pair may still resume the growth of quotations after a decline to the level of the 34th figure or to 1.3325.
The objectives for building the downward wave:
1.3437 - 23.6% of Fibonacci
1.3325 - 38.2% of Fibonacci
Aims to build the upward wave:
1.3599 - 423.6% of Fibonacci
1.3700
General conclusions and trading recommendations:
Wave counting has suffered some changes in connection with the breakdown of the mark of 1.3270. The increase in quotations may resume with targets near the estimated level of 1.3599, which corresponds to 423.6% of Fibonacci and above about 37 figures, within 5, 5, 5, 3 (or C). Within the framework of the correction wave 4, the decline started and may continue with targets near the marks of 1.3437 and 1.3325, which corresponds to 23.6% and 38.2% of Fibonacci. The MACD divergence warns about the readiness of the tool to build a new impulse wave.