Analysis of wave counting:
During the trades on July 25, the GBP / USD currency pair added another 50 percentage points and thus continued the construction of the rising wave, after the supposed completion of the construction of wave 5, 3, a. The downward corridor makes it possible to allow the downward part of the trend and, consequently, the entire wave 3, to become more complicated wave 3, a. A successful attempt to break the upper generatrix of the downward corridor of the line will lead to a conclusion about the readiness of the instrument to build a new upward trend section and will require the introduction of corrections and additions to the current markup. An unsuccessful attempt to break the upper line generates a further at least one downward wave.
The objectives for the option with purchases:
1.3301 - 161.8% of Fibonacci (the oldest Fibonacci grid)
The objectives for the option with sales:
1.2962 - 200.0% of Fibonacci
1.2809 - 261.8% of Fibonacci
General conclusions and trading recommendations:
The GBP / USD currency pair supposedly completed the construction of wave 3 in a. Nevertheless, the downward trend section may complicate its internal structure. Thus, I recommend to expect the pair to rise to the upper line of the downward corridor, near which to monitor whether the pair will be able to make a breakthrough. In the event of an unsuccessful attempt, I recommend forming new sales of the pair with a view to building a downward wave with targets located near the estimated levels of 1.2962 and 1.2809, which corresponds to 200.0% and 261.8% of Fibonacci.
The material has been provided by InstaForex Company - www.instaforex.com