Wave counting analysis:
In the course of trading on October 22, the GBP / USD currency pair fell by 110 basis points. Thus, in the coming hours, a breakthrough of the 100.0% of the Fibonacci mark can be made, which is the minimum of the expected wave 4. If this happens, the wave marking will require making adjustments. The situation on the pound is not completely straightforward. The situation with Brexit puts pressure on the pound. At the same time, a favorable solution to this issue will support the British currency. An unsuccessful attempt to break through the level of 100.0% may lead to a departure of quotes from the lows reached.
The objectives for the option with purchases:
1.3258 - 0.0% according to Fibonacci
1.3300 - 161.8% of Fibonacci
The objectives for the option with sales:
1.2924 - 100.0% of Fibonacci
1.2832 - 127.2% of Fibonacci
General conclusions and trading recommendations:
The currency pair GBP / USD continues to decline in prices, which may lead to the need to clarify the wave marking. So now I recommend waiting for clarification of the situation. If there is no break of the 1.2924 mark, then the working version, which assumes the construction of an upward wave 3, 5, will be preserved. Then, it will be possible to buy a pair with targets located above the 33 figure.
The material has been provided by InstaForex Company - www.instaforex.com