Wave counting analysis:
On December 26, the GBP / USD pair began to decline and lost 80 bp during the day, failing to reach the level of 38.2% by just a few points. Thus, the pair presumably began to build a new descending 3rd wave or from a downward trend. If this assumption is correct, the decline will continue from current levels with targets located under the 25th figure. At the same time, a successful attempt to break through the level of 38.2% will lead to a complication of the estimated wave 2 or b and a further increase in the instrument.
Shopping goals:
1.2742 - 38.2% Fibonacci
1.2825 - 50.0% Fibonacci
Sales targets:
1.2475 - 0.0% Fibonacci
1.2229 - 323.6% Fibonacci (senior grid)
General conclusions and trading recommendations:
The GBP / USD pair could complete the construction of a 3-up structure. The unsuccessful attempt to break through the 1.2742 mark indicates the pair's willingness to decline, and I recommend now selling the pair as part of an estimated 3rd wave or with targets located below the 25th figure. At the same time, the pair may experience difficulties with a fall or rise in the coming days and even a week, as there are no new reports on Brexit now and the markets are clearly waiting for a complete solution to this issue.
The material has been provided by InstaForex Company - www.instaforex.com