Source: Forex Analysis
Analysis of wave counting:
In the course of trading on June 13, the GBP/USD pair added about 65 basis points from the day’s low and thus completed the construction of wave b near the mark of 1.3304, which corresponds to 61.8% of the Fibonacci, built on the size of the wave a. Thus, now there are no visible obstacles to further increase of quotations with the targets being about 1.3478, and most likely, higher, about 1.3651. The fundamental component slightly supports the pound, so wave c, in 2 can turn out to be shortened.
Targets for buying:
1.3478 – 23.6% by Fibonacci
1.3528 – 127.2% by Fibonacci of the highest order
1.3651 – 38.2% by Fibonacci
Targets for selling:
1.3045 – 200.0% by Fibonacci of the highest order
General conclusions and trading recommendations:
The assumed wave 2, in a continues its construction. Now the pair is in the stage of building an internal wave with, at 2. Based on this, it is recommended to continue buying the pair with a minimum target of 1.3478, which is equal to 23.6% of Fibonacci, built on the size of wave 1, in a. Successful attempt to breach the mark of 1.3478 will make it possible to continue buying the pair counting on working off the mark 1.3651, which is the minimum target for wave 2, based on the fundamentals of wave analysis.
The material has been provided by InstaForex Company – www.instaforex.com