During the trading session on December 12, the GBP / USD currency pair added about 140 basis points and, thus, gives grounds to assume the completion of the construction of the supposed wave 5, a. At the same time, looking at the entire internal wave structure of the proposed wave a, it becomes clear that it may become more complicated once more, and the remaining uncertainty about Brexit and even the possible resignation of British Prime Minister Theresa May can further complicate it. Thus, I believe that purchases are premature now, and sales are quite risky.
The objectives for the option with purchases:
1.2696 - 100.0% of Fibonacci
1.2807 - 76.4% of Fibonacci
The objectives for the option with sales:
1.2398 - 161.8% of Fibonacci
1.2218 - 200.0% of Fibonacci
General conclusions and trading recommendations:
The currency pair GBP / USD could complete the construction of wave 5, a. A successful attempt to break the mark of 1.2696, which equals to 100.0% Fibonacci, will warn of the pair's readiness to build an upward wave b. In this case, I will recommend buying small volumes with targets located around 1.2807. An unsuccessful attempt to break through the level of 1.2696 may lead to even more complication of wave a.
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