FX.co ★ Wave analysis of GBP / USD for December 12th. An unsolved question on Brexit does not give a pound a chance to build an uptrend

During the trading session on December 11, the GBP / USD currency pair lost another 75 basis points more. Thus, the expected wave 5, a, continues to build and takes a very complex and non-standard form. A successful attempt to break through the level of 127.2% according to Fibonacci showed the readiness of the instrument to further decline, and the general uncertainty regarding the Brexit question predicts the pound to fall below the target level of 161.8% Fibonacci. Much, as before, depends on the nature of the news background. Yesterday's news from the UK as a whole can be described as neutral. No new data for Brexit.

The objectives for the option with purchases:

1.2935 - 50.0% of Fibonacci

1.2991 - 38.2% of Fibonacci

1.3175 - 0.0% of Fibonacci

The objectives for the option with sales:

1.2398 - 161.8% of Fibonacci

1.2218 - 200.0% of Fibonacci

General conclusions and trading recommendations:

The currency pair GBP / USD continues to build a downward wave 5, a. Considering the news background and the breakthrough of 1.2564, I expect the tool to continue to decline with targets located near the estimated level of 1.2398, which corresponds to 161.8% Fibonacci and recommend small sales of the pair. By the completion of the construction of the wave a, it can lead to a positive news background.