Wave analysis of GBP/USD for August 21. Pound sterling is ready to build 4 waves

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Analysis of wave counting:

During the trade on August 20, the GBP/USD pair gained about 55 bp, so the probability of the completing the construction of the downward trend section increases. The internal wave counting of the assumed wave 3, appears to be almost complete. Accordingly, this wave can be completed and the pair has moved to build wave 4 in a. If this is true, then the increase in quotations will continue with the targets being about 200.0% and 161.8% of Fibonacci. A successful attempt to break through the minimum of August 15 may lead to a complication of the proposed wave 3, a.

Targets for buying:

1.2927 - 200.0% by Fibonacci

1.3027 - 161.8% by Fibonacci

Target for selling:

1.2636 - 261.8% by Fibonacci (the oldest Fibonacci grid)

1.2312 - 423.6% Fibonacci retracement

General conclusions and trading recommendations:

The GBP/USD pair is expected to complete the wave construction 5, at 3, in a. So, it is recommended to buy the pair of small volumes with the first targets near the estimated levels of 1.2927 and 1.3027, which equates to 200.0% and 161.8% of Fibonacci, calculated on the construction of wave 4, in a . Breaking the minimum wave 3, a will indicate the willingness of the instrument to complicate the downward trend section and further reduce.The material has been provided by InstaForex Company - www.instaforex.com