Wave counting analysis:
In the course of trading on October 5, the GBP / USD currency pair added another 100 base points and thus confirmed the transition to building the expected wave 5 of the uptrend trend. If this is true, then after a short pause, the increase in quotations will continue with the first goal, located near the level of 100.0% Fibonacci. The main thing is that the news background now supports just a pound sterling. If there is an adverse background, the market may buy the dollar again, which will lead to a change in the current wave counting.
The objectives for the option with purchases:
1.3295 - 100.0% of Fibonacci
1.3397 - 127.2% of Fibonacci
The objectives for the option with sales:
1.2922 - 0.0% of Fibonacci
General conclusions and trading recommendations:
The currency pair GBP / USD has presumably shifted to building wave 5 of the uptrend trend. Thus, now I recommend buying a pair with the first targets located near the estimated marks of 1.3295 and 1.3397, which corresponds to 100.0% and 127.2% in Fibonacci. I recommend returning to sales only if the successful attempt to break through the level of 0.0% by Fibonacci, which will lead to the complication of the entire trend segment.
The material has been provided by InstaForex Company - www.instaforex.com