FX.co ★ Wave analysis of the GBP / USD currency pair for October 17, 2017

Analysis of wave counting:

By playing a fairly strong divergence of MACD, during the yesterday's trading, the pair GBP / USD resumed the downward movement, having lost almost 80 points and reached the level of 1.3225 at the end of the day. It can be assumed that the currency pair has attempted to complete wave b, in the 4th and go to the stage of formation of the wave c, in the 4th. If this is the case, wave b, in the 4th, will not take an even more complicated form, then the currency pair will continue to decline quotations during the formation of the future wave c, in the 4th.

The objectives for building the downward wave:

1.3065 - 38.2% of Fibonacci

1.2882 - 50.0% of Fibonacci

The objectives for building an upward wave:

1.3291 - 23.6% of Fibonacci

1.3400

General conclusions and trading recommendations:

The downward wave 4 continues to build in the upward trend section. 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 in quotations may still continue with targets above 1.3291, which corresponds to 23.6% of Fibonacci, about 34 figures. The divergence of the MACD warns of the willingness of the instrument to build a downward wave.