16.01.201809:51 Forex Analysis & Reviews: Wave analysis of the GBP / USD currency pair for January 16, 2018

Analysis of wave counting:

In general, it is expected that during the yesterday's trading, the pair GBP / USD continued to develop the upward movement, adding about 90 pp in price and broke the level of the 38th figure in the middle of the day. It can be assumed that while remaining in the stage of formation of the 5th wave, in the 3rd, in the 5th, a, B, C, C, (A), the currency pair practically completed its internal 3rd wave. If this is the case, then in the prevailing conditions, an attempt to gain a foothold above the level of 1.3800 may lead to a currency pair reversal in favor of the dollar, which in turn will mark the beginning of the corrective 4th wave, in the 5th, a, B, C , C, (A).

The objectives for building the downward wave:

1.3600 - 1.3500

The objectives for building the upward wave:

1.3797 - 423.6% of Fibonacci

1.3900

General conclusions and trading recommendations:

The construction of the upward trend section continues, but the entire wave counting of the instrument is not entirely unambiguous now. It is now possible to continue raising quotations with targets near the estimated mark of 1.3797, which corresponds to 423.6% of Fibonacci, within wave 5, a, B, C, C, (A), and above, about 39 figures. An unsuccessful attempt to reach the mark of 423.6% may lead to the withdrawal of quotations from the peaks reached.