Wave counting analysis:
On January 3, the GBP / USD pair added about 30 bp, although it gained as much as 200 bp from the low of the day. Thus, the pair proceeded to build a downward wave of 3 or s. If this wave is identified as s, then it can turn out to be both very short and full-wave, five-wave. The news background, and especially the decision on the Brexit issue in the UK, will be important for determining the dimension of the c wave. there are new negative news coming in, then a wave with can be extended. Otherwise, the wave will take a shortened view and the tool will be able to proceed to the construction of a new upward trend section.
Shopping goals:
1.2815 - 0.0% Fibonacci (formal goal)
Sales targets:
1.2385 - 127.2% Fibonacci
1.2270 - 161.8% Fibonacci
General conclusions and trading recommendations:
The GBP / USD pair has presumably completed wave 2 or b. Thus, I recommend selling the pair, but very cautious, since the current price levels are minimal, and there is no clarity on the Brexit issue yet. Also, an unsuccessful attempt to break through the 50.0% marks or 38.2% according to Fibonacci. It will indicate that the instrument is ready for a new decline with targets located near the estimated 1.2477 mark, which equals 100.0% Fibonacci.
The material has been provided by InstaForex Company -
www.instaforex.com