Wave counting analysis:
On December 28, the GBP / USD currency pair gained about 60 basis points during the day and returned to the highs of the estimated wave c, 2, b. Wave c, 2, b, is still considered complete. If this is true, then the decline in quotations will resume with the first targets located near the level of 0.0%. A successful attempt at a level of 38.2% on the lower Fibonacci grid will indicate that the pair is ready to further increase and complicate wave 2, b.
The objectives for the option with purchases:
1.2742 – 38.2% of Fibonacci
1.2825 – 50.0% of Fibonacci
The objectives for the option with sales:
1.2475 – 0.0% of Fibonacci
1.2229 – 323.6% of Fibonacci (senior grid)
General conclusions and trading recommendations:
The GBP / USD currency pair has presumably completed the construction of a 3-wave structure. An unsuccessful attempt to break the mark of 1.2742 indicates a pair’s willingness to decline, and I recommend selling the pair in small volumes with targets located about 25 figures and below. A break of 38.2% Fibonacci level will trigger a version with a complexity of wave 2, b. There is still no news, which affects the activity of the tool. After the holidays, I expect an increase in market activity.
The material has been provided by InstaForex Company – www.instaforex.com