Analysis of wave counting:
Throughout the past week, the GBP/USD pair has not been able to determine the direction of the movement, trading before the close of the Friday session, mainly between the level of 1.3600 and the mark of 1.3460. It can be assumed that the currency pair began to make attempts to complete the wave c and transition to the stage of formation of the wave d, in b, in B, in C, in C, in (A). If this is the case, and the price will fall almost to the level of 1.3400, wave c, in b, in B, in C, in C, in (A), will not take an even more complex and extended form, then from the already reached minimum on Thursday the currency pair can start a rather dynamic growth of quotations in the direction of the level of the 40th, or even the 42nd figure.
Targets for buying:
1.3443 - 38.2% by Fibonacci
1.3165 - 50.0% by Fibonacci
Targets for selling:
1.3788 - 23.6% by Fibonacci
1.4000 - 1.4200
General conclusions and trading recommendations:
The sterling pound continues the construction of the assumed wave B, in C, in C, in (A). This week it is recommended buying a pair with targets located near the estimated mark of 1.3788, which corresponds to 23.6% Fibonacci, within the construction of wave d, in b, in B, in C, in C, in (A). To the sales I recommend to return below the level of 1.3443 with the targets, which are about 1.3165 (50.0% Fibonacci).
The material has been provided by InstaForex Company - www.instaforex.com