Wave analysis of GBP / USD for May 23. UK problems continue to put pressure on the pound


Analysis of wave counting:

During the Monday's trading, the GBP / USD currency pair attempted to design a corrective wave, but very quickly returned to the decline, having lost about 80 percentage points from the high of the day and continues to build a bearish wave a, 1. The fundamental data from the UK continue to put pressure on the pound sterling, thus giving the chance to sell the currency pair again and again, which leads to an even greater complication of the wave a, 1, whose goals are still near the calculated mark of 1.3300. If the flow of the negative from Britain weakens slightly, then from the 33 figures, a correction set of waves can start.

The objectives for the option with purchases:

1.3528 - 127.2% of the Fibonacci of the highest order

1.3555 - 200.0% of Fibonacci

The objectives for the option with sales:

1.3300 - 161.8% of the Fibonacci of the highest order

1.3300 - 261.8% of Fibonacci

General conclusions and trading recommendations:

The tool continues to complicate the internal wave structure of the assumed wave a, 1 downward trend section. Therefore, I recommend selling the pair with a target located near the estimated mark of 1.3300, which corresponds to 161.8% and 261.8% of Fibonacci. An unsuccessful attempt to reach the 1.3300 mark will warn of the instrument's readiness to build an upward wave (or set of waves) and will allow to form purchases with the first targets located around 1.3528 and 1.3555, which is equivalent to 127.2% and 200.0% of Fibonacci.

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