FX.co ★ Wave analysis of the GBP / USD currency pair. Weekly review

Analysis of wave counting:

Even in conditions of low market activity, during the trades of the past week, the GBP / USD pair was able to continue the development of the upward movement, having broken through the high (1.3550) reached on December 1 and worked out the mark of 1.3610. The resulting wave situation allows us to assume that the currency pair remained in the stage of formation of the internal wave structure of the third wave, in the 5th, a, B, C, C, (A). If this is so, the currency pair has kept the potential for continuing the growth of quotations in the direction of a possible settlement target for this 3rd wave, in the 5th, a, B, C, located above the level of 1.3700. At the same time, the probability of a significant complication of the internal wave structure of the 4th wave, a, B, C, C, (A), and the return of the price to the support level corresponding to 1.3060-1.3040 marks.

The objectives for working off the variant with a downward wave:

1.3065 - 38.2% by Fibonacci

1.2882 - 50.0% by Fibonacci

Goals for developing the option with an upward wave:

1.3800

1.3871 - 161.8% by Fibonacci

General conclusions and trading recommendations:

The pound sterling can resume building a downward set of waves in the composition of 4 while complicating the wave itself with targets located near the calculated marks of 1.3065 and 1.2882, which corresponds to 38.2% and 50.0% of Fibonacci. If this wave is still completed, then the increase will continue with the targets located around 38 figures and the 1.3871 mark, which corresponds to 161.8% by Fibonacci.