Wave counting analysis:
During the November 8 trading session, the GBP / USD currency pair lost about 60 basis points. Thus, there were grounds to assume the completion of the construction of wave a or 1 of a new upward trend section. If this is true, the decline in quotations will continue to the levels of 50.0% and 38.2% according to Fibonacci. After the completion of the corrective wave, the pair's growth is expected to resume, however, in a situation with the pound sterling, much will depend on the news background and the situation with Brexit.
The objectives for the option with purchases:
1.3124 - 76.4% of Fibonacci
1.3256 - 100.0% of Fibonacci
The objectives for the option with sales:
1.2638 - 261.8% of Fibonacci (senior grid)
General conclusions and trading recommendations:
The currency pair GBP / USD remains in the process of building an upward set of waves. The construction of a corrective wave has now begun, so I do not recommend buying a pair before the completion of this wave. There is a fairly high probability that the instrument will proceed to the construction of a pulsed descending wave, and the entire wave marking of the instrument will again require making adjustments. Therefore, with new purchases, we should be extremely careful.
The material has been provided by InstaForex Company - www.instaforex.com