FX.co ★ Wave analysis of the GBP/USD currency pair for December 11, 2017

Analysis of wave counting:

In general,as expected on Friday, the testing of the level of the 35th figure led to the beginning of a fairly dynamic decline and a fall in the price of the GBP/USD pair by more than 160 pp from the high reached at the beginning of the European session. At the same time, it can be assumed that as a result of such a decline in quotations, the currency pair has moved to the stage of formation of the 4th wave, in the future wave a, in c, in the 4th. At the same time, the currency pair retained the potential allowing it to resume the upward movement, with the prospect of further complicating the internal wave structure of the 5th wave, in c, in b, in the 4th.

Targets for a downward wave option:

1.3065 - 38.2% by Fibonacci

1.2882 - 50.0% by Fibonacci

Targets for an upward wave option:

1.3538 - 161.8% by Fibonacci

1.3600

General conclusions and trading recommendations:

The construction of the downward wave 4 in the upward trend section continues. It is now possible to resume the decline in the price of the trading instrument with targets near the estimated level of 1.2882, which corresponds to 50.0% of Fibonacci, within wave a, in c, in 4. After it is completed, the quotes may go to the region of 1.3480.