Analysis of wave counting:
During the trades on September 20, the GBP / USD currency pair added about 130 percentage points and continued, thus, the construction of the proposed wave 3 of a new uptrend section of the trend. A failed attempt to break the 200.0% Fibonacci level pushes the idea of the tool's willingness to construct a downward correction wave. The pair also found strong resistance in the form of a level of 161.8% in the senior Fibonacci grid. A successful attempt to break through the level of 161.8% will lead to a new growth of the British pound sterling.
The objectives for the option with purchases:
1.3275 - 200.0% of Fibonacci
1.3426 - 261.8% of Fibonacci
The objectives for the option with sales:
1,3049 - 200.0% of Fibonacci (the highest grid)
1.2636 - 261.8% of Fibonacci (the highest grid)
General conclusions and trading recommendations:
The currency pair GBP / USD resumed the construction of the third wave. A failed breakthrough attempt at 1.3275 could push the pair down a little, but in general, the whole wave 3 can get even more extended. Thus, a successful attempt to break through 1.3275 will allow to buy again the pair with the targets that are near the calculated mark of 1.3426, which corresponds to 261.8% of Fibonacci.
The material has been provided by InstaForex Company -
www.instaforex.com