Wave analysis of GBP / USD for December 18. Pound: new correctional wave?


Wave counting analysis:

During the December 17 trading session, the GBP / USD currency pair added a total of about 15 basis points. Thus, wave 5, a, continues to be considered complete. If this is true, then the increase in quotations will continue with targets located near the levels of 100.0% and 76.4% Fibonacci. This version is opposed to the news background, which continues to support the dollar, not the pound. Therefore, until the moment when it becomes clear what kind of Brexit is waiting for the UK, under what conditions, it is unlikely that the tool will be able to build a long uptrend of the trend.

The objectives for the option with purchases:

1.2696 - 100.0% of Fibonacci

1.2807 - 76.4% of Fibonacci

The objectives for the option with sales:

1.2398 - 161.8% of Fibonacci

1.2218 - 200.0% of Fibonacci

General conclusions and trading recommendations:

The currency pair GBP / USD supposedly completed the construction of wave 5, a. A break of 1.2696, which corresponds to 100.0% Fibonacci, will confirm the transition of the pair to the construction of the ascending wave b. At the same time, this wave can take a shortened look. If on the subject of Brexit will continue to receive only negative news, in the coming weeks, the pair can go to the construction of a new downtrend trend or complicate the current. I recommend buying very carefully.

The material has been provided by InstaForex Company - www.instaforex.com