Wave counting analysis:
On January 17, the GBP / USD pair gained about 105 bp. The amplitude of the instrument has again grown to its usual values. However, an unsuccessful attempt to break through the level of 76.4% may lead not only to the departure of quotations from the reached maximums but also to the completion of the construction of the entire upward set of waves according to Fibonacci. On the other hand, the news background is not in favor of the pound sterling, however, the currency continues to grow. The pair continues to move mainly to three wave structures.
1.2997 - 76.4% Fibonacci
1.2716 - 38.2% Fibonacci
1.2609 - 23.6% Fibonacci
General conclusions and trading recommendations:
The pair GBP / USD made an unsuccessful attempt to break through the level of 76.4% Fibonacci, which suggests that the instrument is ready for building a downward set of waves.The wave pattern is now ambiguous. You can try to sell the pair based on the construction of the downward wave, as the level of 76.4% keeps the pair from further growth. But in any case, news coming from the UK can make adjustments to the wave picture at any time.
The material has been provided by InstaForex Company - www.instaforex.com