Wave counting analysis:
During the trading on December 10, the GBP / USD currency pair lost about 172 basis points. Thus, the expected wave 5, A, continues its construction and, thanks to all the events of the past days, but also weeks, takes on a very complex and non-standard form. A successful attempt to break through the level of 127.2% Fibonacci and the postponement of the vote in the British Parliament on the Brexit project can lead to a fall of the instrument up to the Fibonacci level of 161.8%.
The objectives for the option with purchases:
1.2935 - 50.0% of Fibonacci
1.2991 - 38.2% of Fibonacci
1.3175 - 0.0% of Fibonacci
The objectives for the option with sales:
1.2566 - 127.2% of Fibonacci
1.2398 - 161.8% of Fibonacci
General conclusions and trading recommendations:
The GBP / USD currency pair continues to build the downward wave A and, presumably, its internal wave 5. Given the news background and the breakthrough of 1.2564, I expect in the coming days to continue reducing the instrument with targets located near the estimated mark of 1.2398, which corresponds to 161.8 % of Fibonacci. Only positive news for the pound can lead to the completion of wave A.
The material has been provided by InstaForex Company -
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