FX.co ★ Wave analysis of the GBP / USD currency pair for August 17, 2017

Analysis of wave counting:

Despite the existing prerequisites, during the yesterday's trading, the pair GBP / USD could not continue the downward movement that began on the previous day and was within the range limited by the level of the 29th figure to the end of the day, as well as the mark of 1.2840. Thus, it can be assumed that the currency pair remained on the stage of the formation of the wave c, as part of a decreasing correction structure, originating from the maximum on August 3, considerably complicating its internal wave structure. If this is so, then the ratio between the dimensions of waves a and c of such a downward correction still allows the probability of resuming the decline of quotations to the level of 1.2790, or even to the level of 1.2700.

The objectives for building the downward wave:

1.2835 - 61.8% by Fibonacci

1.2789 - 76.4% by Fibonacci

Goals for the construction of an upward wave:

1.3000 - 1.3100

General conclusions and trading recommendations:

The British currency has completed the construction of the wave 3 or C of the upward trend section. In this case, the internal wave structure of this wave may require the introduction of adjustments. The last section of the trend is a three wave correction structure a-b-c. Thus, the decline in quotes will continue with targets near the estimated levels of 1.2835 and 1.2789, which corresponds to 61.8% and 76.4% of Fibonacci, within the wave c. The MACD convergence warns about the readiness of the tool to increase.