FX.co ★ Wave analysis of the GBP / USD currency pair for October 12, 2017

Analysis of wave counting:

Having stood almost all the past day in the range near the level of the 32nd figure, only at the end of the auction, the GBP / USD pair made an attempt to continue the upward movement and completed the American session near the 1.3235 mark. Thus, it seems that the currency pair still remained in the formative stage of taking an increasingly complex form of wave b, 4th. At the same time, the emerging divergence of MACD indicates the existing probability of a renewed decline in quotations, and therefore wave a, 4th, may take the form of an unfinished five-wave structure.

The objectives for building the downward wave:

1.3065 - 38.2% of Fibonacci

1.2882 - 50.0% of Fibonacci

The objectives for building the upward wave:

1.3291 - 23.6% of Fibonacci

General conclusions and trading recommendations:

The construction of the downward wave 4 in the upward trend section continues. Now, it is possible to resume the lowering of quotations with targets near the calculated marks of 1.3065 and 1.2882, which corresponds to 38.2% and 50.0% of Fibonacci, within the limits of wave c, 4. Within the corrective wave b, 4, the increase continues with targets near the 1.3291 mark, which corresponds to 23.6% of Fibonacci. The divergence of the MACD warns of the willingness of the instrument to build a downward wave.