Wave counting analysis:
During the November 9 trading session, the GBP / USD currency pair lost about 90 basis points, and tonight, given the opening gap, another 100 basis points lost. This is the market reaction to the rejection by Brussels of the next May proposal for Brexit. The current wave counting involves the construction of a 3-wave upward structure and the resumption of the increase after the completion of the proposed wave b. However, given the increased probability of failure of all negotiations on the conditions of Brexit, the wave pattern can be transformed into a descending one.
The objectives for the option with purchases:
1.3124 - 76.4% of Fibonacci
1,3256 - 100.0% of Fibonacci
The objectives for the option with sales:
1.2638 - 261.8% of Fibonacci (senior grid)
General conclusions and trading recommendations:
The currency pair GBP / USD remains in the process of building an upward set of waves. The construction of wave b is in progress, so I do not recommend buying a pair before the completion of this wave. There is also a high probability that the pair will complicate the downward trend, which may contribute to the news background. An unsuccessful attempt to break the mark of 1.2828 may lead to a departure of quotes from the lows reached.
The material has been provided by InstaForex Company -
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