Analysis of wave counting:
During the trades on September 17, the GBP / USD currency pair increased by 95 percentage points and, thus, continued the construction of an ascending wave, bounded by a tapering corridor. The assumed wave is part of the corrective structure, which takes its origin on August 15 and has an unconventional appearance. It is this non-standard form that does not allow us to imagine how strong and long the future growth of the pair will be. Anyway, an unsuccessful attempt to break through the level of 161.8% on a small Fibonacci grid will lead to the withdrawal of quotations from the maximum reached, and possibly to the completion of the entire wave.
The objectives for the option with purchases:
1.3181 - 161.8% of Fibonacci
1.3275 - 200.0% of Fibonacci
The objectives for the option with sales:
1.2636 - 261.8% of Fibonacci (the highest grid)
General conclusions and trading recommendations:
The GBP / USD currency pair continues to be in a stage of some uncertainty. The third wave of the upward trend section continues its construction with targets located near the calculated marks of 1.3181 and 1.3275. I recommend staying in the stores with these goals. However, this wave can complete its construction near the designated marks, so new purchases are risky. Much will depend on the news background.
The material has been provided by InstaForex Company -
www.instaforex.com