FX.co ★ Wave analysis of the GBP / USD currency pair for October 13, 2017

Analysis of wave counting:

The attempt made yesterday by the GBP / USD pair to complete the development of the upward correction did not succeed, and after the decline to 1.3120, the price rebounded by 170 pp at the end of the auction from the minimum reached in the middle of the day. It can be assumed that, despite such significant volatility, the currency pair remained in the stage of formation of wave b, 4th. At the same time, the surviving divergence of MACD still indicates the probability of a renewed decline in quotations and an even more complicated internal wave structure of wave a, 4th.

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.