Wave counting analysis:
On February 13, the GBP / USD pair lost about 50 bp. Nevertheless, the estimated wave 1 or a still looks complete. The wave pattern assumes the construction of a correctional wave 2 or b. At the same time, the close approach of the instrument to the minimum of wave 1 or a raises doubts about the preparedness of the instrument to increase. Moreover, a successful attempt to break through the level of 50.0% will lead to a further decrease in instrument quotes. So far, the working option remains the only option with the increase. Meanwhile, it is unfortunate that the news background still does not support the pound sterling. Thus, the second wave will be quite difficult to build or it will turn out to be short.
1.3033 - 23.6% Fibonacci
1.2827 - 50.0% Fibonacci
1.2734 - 61.8% Fibonacci
General conclusions and trading recommendations:
The wave pattern assumes the completion of the construction of the first wave of the downward trend section and the construction of wave 2 or b. Thus, now, I recommend either not to sell the pair, or to buy limited volumes with targets located near the estimated mark of 1.3033, and always with restrictive orders below the level of 50.0% Fibonacci.
The material has been provided by InstaForex Company - www.instaforex.com