Source: Forex Analysis
Wave counting analysis:
In the course of trading on October 10, the GBP / USD pair gained about 45 bp or more and continues to build estimating the 5th wave of the upward trend section with the first goal located near the 100.0% Fibonacci level. Despite the absence of a positive news background for the sterling pound, the currency continues to grow, thanks to expectations of progress in the Brexit negotiations. This factor fits perfectly into the current wave marking.
1.3295 – 100.0% Fibonacci
1.3397 – 127.2% Fibonacci
1.2922 – 0.0% Fibonacci
General conclusions and trading recommendations:
The GBP / USD pair continues to build estimating the 5th wave. Thus, I recommend now to continue buying the pair with targets located near the estimated levels of 1.3295 and 1.3397, which corresponds to 100.0% and 127.2% Fibonacci. There are no compelling reasons for selling a pair. However, this could appear if information about the lack of progress in negotiations between the EU and Britain emerged or in the event of a complete failure of the negotiations.
The material has been provided by InstaForex Company – www.instaforex.com