Wave counting analysis:
On January 24, the GBP/USD pair dropped by 10 bp, but the current wave counting did not undergo any changes and suggests building an uptrend. In the proposed third wave, the elongation and internal 5-wave structure are already visible. Given the unresolved issue with Brexit, there is doubt that this impulse wave will be built completely and the wave pattern does not transform into anything. An unsuccessful attempt to break through the Fibonacci level of 100.0% may lead to the construction of an internal fourth wave in 3.
Purchases targets:
1.3168 - 100.0% Fibonacci
1.3367 - 127.2% Fibonacci
Sales targets:
1.2996 - 76.4% Fibonacci
1.2889 - 61.8% Fibonacci
General conclusions and trading recommendations:
The wave pattern involves the construction of 5 ascending waves. Now, I recommend buying with targets located near the estimated level of 1.3168, which corresponds to 100.0% Fibonacci, since the estimated third wave does not look fully completed. After building the fourth wave in 3, it is expected that the instrument will continue to increase with targets located near 1.3367.
The material has been provided by InstaForex Company - www.instaforex.com