20.02.201809:32 Forex Analysis & Reviews: Wave analysis of the GBP / USD currency pair for February 20, 2018

Analysis of wave counting:

Despite the rather low activity of yesterday's trading, the currency pair GBP / USD was able to update the minimum reached on Friday, having lost about 70 percentage points in price and was able to work out the mark of 1.3960 in the second half of the day. It can be assumed that the currency pair made an attempt to complete the formation of the wave 2, 5, 5, a, B, C, C, (A). If this is so, then from the low of the past day, or almost from the level of the 39th figure, the currency pair will resume the growth of quotations, thereby indicating the beginning of the wave 3, 5, 5, a, B, C, C, (A). At the same time, the probability of the continuation of the price reduction to the level of 1.3700 remains, in connection with which, the wave 4, 5, a, B, C, C, (A) can take the form of one from corrective triangles.

The objectives for building a downward wave:

1.3946 - 38.2% of Fibonacci

1.3823 - 50.0% of Fibonacci

The objectives for building an upward wave:

1.4294 - 685.4% of Fibonacci

1.4400

General conclusions and trading recommendations:

The construction of the upward trend section continues. The assumed wave 4, 5, a, B, C, C, (A) is completed. If this is the case, then we are waiting for an extended ascending trend section with the first goals, which are about 44 figures within the wave 5, 5, a, B, C, C, (A). However, wave counting can become even more complicated. Now, the construction of the correctional wave 2 is supposedly going on.