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

Analysis of wave counting:

So, unable to resume the downward movement, the GBP / USD pair started trading with the growth of quotations, adding more than 300 pp in the price and completed Friday's breakdown of the level of the 32nd figure. At the same time, it can be assumed that despite the price return to the August highs, the currency pair has so far remained at the stage of formation of wave b, in the forthcoming 4th, as part of the upward trend segment which starts from the lows of the beginning of the year. At the same time, it should be noted that in case of growth of the currency pair above the level of 1.3270, it may be necessary to refine the wave marking of the 4th wave, in the 3rd wave (or C).

The objectives for a downward wave option:

1.2688 - 50.0% of Fibonacci

1.2551 - 61.8% of Fibonacci

The objectives for an upward wave option:

1.3273 - 161.8% of Fibonacci

1.3435 - 161.8% of Fibonacci

General conclusions and trading recommendations:

The pound sterling completed the construction of wave 3 or C. If this is the case, then this week it is expected to resume lowering of quotations within the wave c, 4 with targets located near the marks of 1.2688 and 1.2551, which corresponds to 50.0% and 61.8% of Fibonacci. The upward corridor still retains the prospects for building an uptrend.