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Wave analysis of GBP / USD for October 1. Wave 4 takes on a classic look.

analytics5bb1cc2400fe9.png

Wave counting analysis:

During the trading on September 28, the GBP / USD currency pair dropped by another 45 percentage points and, thus, continues to build the wave c, 4. If this assumption is true, then the decline in quotations will continue today in the direction of the 61.8% Fibonacci level. An unsuccessful attempt to break through the 61.8% mark may lead to the completion of the construction of this wave and the transition of the pair to the construction of an upward wave 5 with targets located above the 33 figure.

The objectives for the option with purchases:

1.3301 - 161.8% of Fibonacci (senior grid)

The objectives for the option with sales:

1.2982 - 61.8% of Fibonacci

1.2908 - 76.4% of Fibonacci

General conclusions and trading recommendations:

The GBP / USD currency pair continues to build the expected wave c, 4. Thus, now I recommend to continue selling the pair with targets located near the levels of 1.2982 and 1.2908, which corresponds to 61.8% and 76.4% of Fibonacci. An unsuccessful attempt to break through one of these marks may indicate the completion of wave 4, in which case, I recommend closing sales. There is no hint at the beginning of the construction of the ascending wave.

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