FX.co ★ Wave analysis of the GBP / USD currency pair for August 25, 2017

Analysis of wave counting:

Despite the considerable range of the price change during yesterday's trading, the GBP/USD pair could not determine the direction of its movement and finished the day near the level of the 28th figure. At the same time, it seems that the currency pair has made another attempt to complete the formation of the 5th wave, which corrected its wave structure, in a, as part of a downward correction, which was developed from the highs of the beginning of the month. If this is so, while maintaining the potential for further decline in quotations to the level of the 27th figure, the currency pair will still do the turn and will designate the start of wave b, as part of this downward correction.

Objectives for a downward wave option:

1,2789 - 76.4% by Fibonacci

1,2714 - 100,0% by Fibonacci

Objectives for an upward wave option:

1.3000 - 1.3100

General conclusions and trade recommendations:

The British currency continues to build a downward set of waves. The decrease in quotations may continue with targets near the estimated levels of 1.2789 and 1.2714, which corresponds to 76.4% and 100.0% of Fibonacci, within the wave 5, and while in the construction of a supposedly 3-wave downward structure. The downward corridor retains the prospect of continued decline in quotations. Breakthrough of its upper generating line will indicate the tool's readiness to build an upward wave, presumably b.