Wave counting analysis:
During the November 5 trading session, the GBP / USD currency pair gained about 20 basis points. Thus, the rising wave, which takes its beginning on October 30, continues its construction and takes on a long appearance. A further increase based on the news background and market expectations may lead to the need to clarify the current wave marking. The news background is still very important for the tool and, accordingly, can influence wave counting.
The objectives for the option with purchases:
1.3124 - 76.4% 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 continues to build the expected wave 4. It is expected that this wave will end soon, therefore, new purchases of the pair are associated with an increased risk. However, until there is a basis for assuming the completion of this wave, the pair's purchases can be supported with the target of 1.3124. An unsuccessful attempt to break through this mark could lead to the completion of the upward wave.
The material has been provided by InstaForex Company -
www.instaforex.com