Wave counting analysis:
During the November 2 trading session, the GBP / USD currency pair lost about 35 basis points. Thus, the estimated wave 4, c, took a very long form, but can be completed. If this is true, then from the current levels, the pair will resume a decline within wave 5, c. There is also an alternative option, in which the pair will proceed to the construction of an uptrend trend, but it is based on a favorable news background, which may not be the case. For the pound sterling, a lot still depends on the situation around Brexit and the negotiations on this issue.
The objectives for the option with purchases:
1.3043 - 61.8% of Fibonacci
1.3124 - 76.4% of Fibonacci
The objectives for the option with sales:
1.2638 - 261.8% of Fibonacci (senior grid)
General conclusions and trading recommendations:
The GBP / USD currency pair continues to build the estimated wave 4. However, this wave may end in the near future, so I do not recommend opening new purchases of the pair in the absence of a successful attempt to break through the 61.8% of the Fibonacci mark. If the pair passes the mark of 1.3043, this will mean readiness for further increase and, accordingly, complication of the wave structure of the instrument.
The material has been provided by InstaForex Company - www.instaforex.com