Wave analysis of the GBP / USD currency pair for May 10, 2018

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Analysis of wave counting:

The low activity of yesterday's trading did not allow the GBP / USD currency pair to develop any significant upward movement and the price returned to the opening levels of the day before the close of the American session. At the same time, it can still be assumed that the currency pair continued to make attempts to transition to the formation stage of wave b, c, b, B, C, C, (A). At the same time, the currency pair retained the potential to resume the decline of quotations to the level of the 34th figure and further complicate the internal wave structure of the entire wave c, b, B, C, C, (A).

The objectives for building a downward wave:

1.3414 - 127.2% of Fibonacci

The objectives for building an upward wave:

1.3900 - 1.400

General conclusions and trading recommendations:

The wave counting assumes the construction of a descending set of waves. The decline in quotes may continue in the wave a, c, b, B, C, C, (A) with targets near the estimated mark of 1.3414, which is equivalent to 127.2% of Fibonacci. Within the framework of the construction of wave b, c, b, B, C, C, (A), the quotations may start to depart from the reached lows with targets located about 39 and 40 figures. An unsuccessful attempt to break the 1.3414 mark may lead to the completion of the downward wave construction.

The material has been provided by InstaForex Company - www.instaforex.com