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Wave analysis of GBP / USD for December 20. The pound seems to be preparing for a new downward wave

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Wave counting analysis:

During the trading on December 19, the GBP / USD pair lost about 30 bp, which, however, did not affect the current wave counting. A construction of at least a three-wave upward structure is still expected. However, an unsuccessful attempt to break through the 100.0% Fibonacci level already warns that the tool may return to decline and significantly complicate the downward trend. Three waves of the corrective part are already there. Therefore, there are all wave bases to assume the construction of a new downward wave.

Shopping goals:

1.2696 - 100.0% Fibonacci

1.2807 - 76.4% Fibonacci

Sales targets:

1.2564 - 127.2% Fibonacci

1.2398 - 161.8% Fibonacci

General conclusions and trading recommendations:

In conclusion, the pair GBP / USD may complete the upward set of waves in the near future. Only a successful attempt to break through the level of 100.0% will indicate a couple's willingness to grow, and I will recommend new purchases with targets located near the 1.2807 mark, which equals 76.4% Fibonacci. Otherwise, the instrument may proceed to the construction of a new downward wave with targets located around 1.2564 and 1.2398.

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