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Wave analysis of the GBP / USD currency pair for May 16, 2018

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Analysis of wave counting:

Having failed to execute the turn, in the course of yesterday's trading, the currency pair GBP / USD resumed the downward movement, having updated the minimum reached on May 10 (1.3460) and fell to the level of 1.3450 in the afternoon. Thus, it can be assumed that the currency pair nevertheless returned to the process of forming the wave c, b, B, C, C, (A), in the form of a full five-wave structure. If this is the case, then the currency pair may have prospects for lowering quotes up to the level of 1.3175.

The objectives for the option with purchases:

1.3647 - 76.4% of Fibonacci

1.3700

The objectives for the option with sales:

1.3459 - 100.0% of Fibonacci

1.3334 - 127.2% of Fibonacci

General conclusions and trading recommendations:

The tool continues to complicate the wave structure of the wave c, b, B, C, C, (A). Now, I recommend to remain in sales with targets that are near the estimated marks of 1.3459 and 1.3334, which corresponds to 100.0% and 127.2% of Fibonacci. An unsuccessful attempt to reach the 1.3334 mark will warn of the instrument's readiness to build a wave with the first targets located around 37 figures.

The material has been provided by InstaForex Company - www.instaforex.com