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

Analysis of wave counting:

Last week's GBP / USD pair started with a slow decline and after losing more than 150 pp, it has reached the level of 1.3340. It can be assumed that the currency pair still remained within the 5th wave, in the 3rd (or C), completing the formation of the slightly extended form of its internal 4th wave. If this is the case, then from Friday's low, or slightly lower, the currency pair will resume the growth of quotations to 1.3850. At the same time, further development of the downward movement may indicate the completion of the entire supposed 3rd wave (or C) and the beginning of an extended downward correction.

The objectives for a downward wave option:

1.3260 - 127.2% of Fibonacci

Goals for an upward wave option:

1.3629 - 200.0% of Fibonacci

1.3850 - 261.8% of Fibonacci

General conclusions and trading recommendations:

The pound sterling continues to build the upward wave of 3 or C. This week, it is expected that the quotes will resume rising within wave 5, 3 or C, with targets located near the calculated marks of 1.3629 and 1.3850, which corresponds to 200.0% and 261.8% of Fibonacci. The upward corridor still retains the prospects for building an uptrend. Now, the correction wave is being built with targets of about 1.3260 (127.2% Fibonacci).