FX.co ★ Wave analysis of the GBP / USD currency pair for October 4, 2017

Analysis of wave counting:

In general, it is expected that during the yesterday's trading, the GBP / USD pair started with the continuation of the downward movement, having lost more than 50 pp and reached 1.3220 in the middle of the day. At the same time, it can still be assumed that the currency pair remained in the stage of wave formation a, in the fourth, trying to complete its internal wave. If this is the case, then from the low of the past day or after the decline of quotations to the level of 1.3185, the currency pair may indicate the beginning of wave b, in the supposed 4th, with the prospect of rolling back prices up to the level of the 35th figure.

The objectives for building the downward wave:

1.3186 - 200.0% of Fibonacci

1.3062 - 38.2% of Fibonacci

Aims for building the upward wave:

1.3480 - 11.4% of Fibonacci

General conclusions and trading recommendations:

The proposed wave 3 or C has completed its construction. Now, it is possible to lower the quotations with targets near the calculated marks of 1.3186 and 1.3062, which corresponds to 200.0% and 38.2% of Fibonacci, within a, 4. Within the corrective wave b, 4 may begin increase with targets near the mark of 1.3480, which corresponds to 11.4% of Fibonacci. An unsuccessful attempt to break the 1.3186 mark may lead to the construction of a corrective wave.