Analysis of wave counting:
During the trades on June 14, the GBP/USD pair lost about 200 bp, but remained within the framework of the proposed wave b, in 2. The break of the May 29 low is likely to mean a resumption of the construction of the downward trend section with the first targets about 1.3045. At the same time, wave 2, in a can take the form of one of the correctional triangles, which will allow to expect the construction of its internal wave s with the targets located near the estimated mark 1.3651.
Targets for buying:
1.3478 - 23.6% by Fibonacci
1.3528 - 127.2% by Fibonacci of the highest order
1.3651 - 38.2% by Fibonacci
Targets for selling:
1.3045 - 200.0% by Fibonacci of the highest order
General conclusions and trading recommendations:
The assumed wave 2, however, can take a more complex form. A successful attempt to breakdown 32 figures can confirm the transition of the instrument to the construction of the supposed wave 3, at a with the targets being around 1.3045, which is equivalent to 200.0% Fibonacci. At the same time, there are still some chances to build a wave c, in 2 with the exit of quotations to 1.3651. Trade should now be conducted carefully, as there are two practically equivalent options for the development of events.
The material has been provided by InstaForex Company - www.instaforex.com