Analysis of wave counting:
During the trading course yesterday, the GBP / USD pair however continued to develop the upward movement and added about 240 pp in price, which completed the day above the level of the 42nd figure. At the same time, it seems that the currency pair remained in the formative stage of the strongly extended formation, the 5th wave, in the 3rd, in the 5th, in a, in B, in C, in C, in (A). If this is the case, then the internal wave dimension of this 5th wave, in the 3rd, in the 5th, in a, in B, in C, in C, in (A), indicates that testing the 1.4300 level will lead to a price turn in favor of the dollar and could also mark the beginning of the 4th wave, in the 5th, in a, in B, in C, in C, in (A).
Targets for building a downward wave:
1.3600 - 1.3500
Targets for building an upward wave:
1.4294 - 685.4% Fibonacci retracement
1.4400
General conclusions and trading recommendations:
The construction of the upward trend section continues, but the entire wave counting of the instrument as of the moment was not really unambiguous. As of this writing, it is possible to continue raising quotes with the targets near the estimated level of 1.4294, which is equivalent to 685.4% Fibonacci, within wave 5, in a, in B, in C, in C, in (A), and nearly above 44 figures. Within the framework of the correctional wave 4, quotations can rebound from the reached maximum with the targets around 36 figures. The MACD divergence warns about the possible withdrawal of quotations from the major targets.* The presented market analysis is informative and does not constitute a guide to the transaction.