Wave counting analysis:
During the trading on October 12, the GBP / USD pair lost about 85 base points. Thus, there is a reason to assume the construction of an internal correctional wave 2, in the future wave 5. If this is true, then an increase in quotations may resume from the current levels within wave 3 with targets located near the 100.0% of Fibonacci level. There are no grounds for sales, neither wave nor fundamental. On October 17, the EU summit and the next round of talks on Brexit will take place. Information from this event can greatly affect the movement of the pair.
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 GBP / USD currency pair continues to build the estimated wave 5. Thus, now I recommend to continue to buy the pair with targets located near the estimated levels of 1.3295 and 1.3397, which corresponds to 100.0% and 127.2% of Fibonacci. An unsuccessful attempt to break through the 1.3295 mark may lead to a departure of quotes from the reached maximums. There are no compelling reasons for selling, especially fundamental ones.
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