FX.co ★ Wave analysis of the GBP / USD currency pair. Weekly review

Analysis of wave counting:

After falling to the level of 1.2950 on Tuesday, the GBP / USD pair spent the rest of the week in the range, trading near the level of the 30th figure. At the same time (with considerable stretch), it can be assumed that the currency pair made an attempt to complete the 3rd wave (or C) taking the form of the five-wave structure and to form the beginning of a rather extended downward correction. If this is the case, the currency pair may resume the decline of quotations towards the settlement targets located in the range between the level of 1.2825 and the level of 1.2700.

The objectives for a downward wave option:

1.2825 - 38.2% by Fibonacci

1.2688 - 50.0% by Fibonacci

The objectives 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 supposedly completed the construction of wave 3 or C. If this is the case, then this week the quotations are expected to fall within wave 4 with targets located near the marks of 1.2825 and 1.2688, which corresponds to 38.2% and 50.0% of Fibonacci. The upward corridor preserves the prospects for building an uptrend section of the trend. An unsuccessful attempt to break through the 1.3273 mark led to the withdrawal of quotations from the peaks reached.