FX.co ★ Wave analysis of the GBP / USD currency pair for April 25, 2018

Analysis of wave counting:

While working out the MACD divergence that was outlined earlier, during the yesterday's Asian session, the GBP / USD pair started with an upward movement, adding about 70 percentage points in price and managed to finish the mark of 1.3985 at the end of the day. In this case, the internal wave structure of the entire wave a, a, c, b, b, c, c, (A) took a completely completed form. If this is the case, then already indicated growth of quotations may turn out to be the beginning of the future wave b, a, c, b, B, C, C, (A), whose calculated goals extend up to the level of the 42nd figure. At the same time, under the current conditions, the currency pair still retains the potential for resuming the price decline to 1.3880 and further complicating the wave a, a, c, b, B, C, C, (A).

The objectives for building a downward wave:

1.3882 - 423.6% of Fibonacci

1.3800

The objectives for building an upward wave:

1.4200

General conclusions and trading recommendations:

The wave counting assumes the construction of a descending set of waves. The reduction of quotations can continue within the impulse wave with targets near the mark of 1.3882, which is equivalent to 423.6% of Fibonacci. Within the framework of the construction of wave b, a, c, b, B, C, C, (A) may begin (or has already begun) an increase with targets located about 42 figures. The MACD convergence warns about the readiness of the tool to increase.