Wave counting analysis:
During the October 25 trading session, the GBP / USD currency pair lost another 65 basis points and continued to build the proposed wave c within the three waves downward structure. A successful attempt to break through the level of 127.2% according to Fibonacci suggests that the pair is ready for a further decline with targets located near the 161.8% level. The news background remains on the side of the US dollar, so the wave c can take a very long look.
The objectives for the option with purchases:
1.3258 - 0.0% according to Fibonacci
1.3300 - 161.8% of Fibonacci
The objectives for the option with sales:
1.2718 - 161.8% of Fibonacci
1.2638 - 261.8% of Fibonacci (senior grid)
General conclusions and trading recommendations:
The currency pair GBP / USD keeps the downward mood. As before, the new sales of the pair are now quite risky, despite the fact that the wave c can continue its construction. However, already open sales can be kept open with targets located near the estimated mark of 1.2718, which corresponds to 161.8% of Fibonacci. An unsuccessful attempt to break through this mark may lead to the completion of the construction of the downward wave.
The material has been provided by InstaForex Company - www.instaforex.com